A construction company has acquired a specialised short$-$term borrowing

facility of up to RM$35$ million. Under this agreement, the corporation will

incur a surcharge of $1\mathrm{.}0$ percent in addition to the Kuala Lumpur Interbank

Offering Rate $($KLIBOR$).$ At present, the cash rate stands at $3\mathrm{.}5$

percent and it is anticipated to exhibit a gradual upward trajectory over the

next three months. The current quotations for early May and August

futures on the Malaysia Derivatives Exchange are at $97.$ Given the

hypothetical scenario where the cash rate in August concluded at a rate

of $3$ percent, and the futures for August settled at a value of $95.$

Determine the effective interest rate using the information above.