Cheap Money Bank offers your firm a discount interest loan with an interest rate of $8$

percent for up to $$28$ 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?

Note: Do not round intermediate calculations and enter your answer as a percent

rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Answer is complete but not entirely correct.