#10

Come and Go Bank offers your firm a discount interest loan with an interest rate of 10 percent for up to $11 million, and in addition requires you to maintain a 5 percent compensating balance against the face amount borrowed. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate?