Below is the question- I just cant seem to figure out how to show for the rates given below as solution using a BA II calculator or any other financial calculator. Does anyone know how to solve for the rates using a calculator?

A local finance company quotes a 10 percent interest rate on one-year loans. So, if you borrow $30,000, the interest for the year will be $3,000. Because you must repay a total of $33,000 in one year, the finance company requires you to pay $33,000/12, or $2,750, per month over the next 12 months.

(a) This is not really a 10 percent loan. Instead, what is the effective monthly rate?

correct answer was: 1.50%

(b) What rate would legally have to be quoted?

was: 18.00%

(c) What is the effective annual rate?

answer was: 19.56%

Now, using NOM = 18% I got the answer of 19.56% for c. My question is how did I get the 18%?

thanks