What interest rate would legally have to be quoted

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Reference no: EM131550960

A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $28,000, the interest for the year will be $4,760. Because you must repay a total of $32,760 in one year, the finance company requires you to pay $32,760 / 12, or $2,730.00, per month over the next 12 months.

What interest rate would legally have to be quoted? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What is the effective annual rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131550960

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