Hello,

I have question a figured out, but I cannot understand what formula I need for b. I'd appreciate any help, thank you!

Chapter 6 - Part 1 Discounted Cash Fl... A Saved Help Save & Exit Submit Check my work Problem 6-19 EAR versus APR (LO4] Big Dom's Pawn Shop charges an interest rate of 26.8 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. points eBook a. What rate should the shop report? (Do not round intermediate calcualtions. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. 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.) Ask Print References APR [ 321.6% 7.66: %