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Effective annual rate A financial institution made a $5,000,000, 1-year discount loan at 6% interest, requiring a compensating balance equal to 6% of the face

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Effective annual rate A financial institution made a $5,000,000, 1-year discount loan at 6% interest, requiring a compensating balance equal to 6% of the face value of the loan. Determine the effective annual rate associated with this loan. (Note: Assume that the firm currently maintains $0 on deposit in the financial institution.) The effective annual rate associated with the loan is %. (Round to two decimal places.)

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