A local finance company quotes a 17 percent interest rate on one-year loans. So, if you borrow $15,000, the interest for the year will be $2,550. Because you must repay a total of $17,550 in one year, the finance company requires you to pay $17,550/12, or $1,462.50, per month over the next 12 months. Is this a 17 percent loan? What rate would legally have to be quoted? What is the effective annual rate?