Carey Company is borrowing $$375,000$ for one year at $16\mathrm{.}0$ percent from Second Intrastate Bank. The bank requires a $18$ percent compensating balance. The principal refers to funds the firm can utilize effectively $($Amount borrowed $-$ Compensating balance$).$

a$.$ What is the effective rate of interest?

Note: Use a $360-$day year. Input your answer as a percent rounded to $2$ decimal places.

Answer is complete and correct.

$\backslash$table$[[$Effective rate of interest,$19\mathrm{.}51,\%$