What rate would legally have to be quoted-annual rate

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A local finance company quotes an interest rate of 15.6 percent on one-year loans. So, if you borrow $36,000, the interest for the year will be $5,616. Because you must repay a total of $41,616 in one year, the finance company requires you to pay $41,616/12, or $3,468.00 per month over the next 12 months.

Is the interest rate on this loan 15.6 percent?

What rate would legally have to be quoted?

What is the effective annual rate?

Reference no: EM13848985

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