Holland Construction Co. has an outstanding 180-day bank loan of $393,000 at an annual interest rate of 9.6%. The company is required to maintain a 12% 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.)

• 12.91%

• 13.91%

• 10.91%

• 9.91%