Essay
The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its automobiles.The telephone vendor has offered to finance the $1,500 purchase over one year in 12 installments,with a total of $140 in interest to be paid on the loan.Magic Pumpkin's bank has offered to finance the purchase with an instalment loan,where $155 in interest will be repaid and payments on the loan must be made quarterly.What are the annual interest rates on these loans?
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