Doors Inc has arranged a revolving credit agreement for up to $61 million at an interest rate of 1.30 percent per quarter. The agreement also requires Doors Inc to maintain a compensating balance of 3 percent of the unused portion of the credit line, to be deposited in a non-interest bearing account. Doors Inc's short-term investment account at the same bank pays an interest rate of .44 per quarter.

What is the effective annual interest rate if Doors Inc borrows $26 million for one year?