A local finance company quotes a 16.8 percent interest rate on one-year loans. S

A local finance company quotes a 16.8 percent interest rate on one-year loans. So if you borrow $30000 the interest for the year will be $5040. Because you must repay a total of $35040 in one year the finance company requires you to pay $35040/12 or $2920.00 per month over the next 12 months.What rate would legally have to be quoted?(Do not include the percent sign (%).Enter rounded answer as directed but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g. 32.16).)I calculated that as 29.70% (and was confirmed correct!)My question is:What is the effective annual rate?(Do not include the percent sign (%).Enter rounded answer as directed but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g. 32.16).)