Intro Deep Sea Mining Inc. wants to preserve financial flexibility by obtaining a line of credit for $10 million. The interest on any money borrowed is 15% (with annual compounding) and there is a 15% compensating balance requirement, i.e., 15% of the money borrowed must be kept in a non-interest bearing account with the bank. The company wants to borrow $1,300,000 to build a new mine. What is the annual interest rate on the loan if the company borrows $1,300,000 for one year? 3+ decimals