What interest rate would legally have to be quoted

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A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $31,000, the interest for the year will be $5,270. Because you must repay a total of $36,270 in one year, the finance company requires you to pay $36,270 / 12, or $3,022.50, per month over the next 12 months.

What interest rate would legally have to be quoted? Annual percentage rate=_____

What is the effective annual rate? Effective annual rate=____

Reference no: EM13848467

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