The Second National Bank of Fullerton advertises an APR of 16%, but it indicates in the small print that compounding occurs on a monthly basis for personal loans with no collateral required.

a)Determine the APY you would pay using an equation. The APY paid would be % per year

. b)Determine the APY you would pay using a spreadsheet function. The spreadsheet function used to determine the APY is EFFECT(16%,12) The APY paid would be %.