Problem:
WeCheatU Loans offers to loan you $6,000 at 6% simple interest for a five-year period. In order to make it easier for you to pay, they take each year's interest of $360 and add it to the $6,000 principal to get $7,800 ($6,000 + 5 x $360). Then, they spread this evenly over the sixty months to get your monthly payment of $130.00 ($7,800/60).
Task:
Question 1: What is the APR of this loan; and
Question 2: What is its EAR?
Please provide all calculations and formulas.