In exchange for a $2 million fixed commitment line of credit, a firm has agreed to do the following:

1. Pay 0.5% per month on any funds actually borrowed.

2. Maintain a 4% compensating balance on any funds actually borrowed.

3. Pay an up-front commitment fee of 0.2% of the unused amount of the line.

Assume the firm immediately borrows $800,000 from the line to use for 1 year. What is the EAR on this $200,000? (Round your answer to 2 decimal places. Do not round intermediate calculations. Do not include % sign in your answer.)