Holland Construction Co. has an outstanding 180-day bank loan of $403,000 at an annual interest rate of 9.2%. The company is required to maintain a 16% compensating balance in its checking account. What is the effective interest rate on the loan? Assume the company would not normally maintain this average amount. (Use 360 days in a year. Round your answer to 2 decimal places.)

13.95%

9.95%

12.95%

10.95%