Jamal Gobert is considering a home equity loan, but he needs to know the real cost of borrowing in the following case. A home equity loan is advertised at three percent compounded monthly, however, there is a legal fee of $400 and appraisal fee of $450 to set up the house as collateral. If Jamal needs to borrow $30,000 for one year, at which time will be able to repay the full amount, what is the effective rate of borrowing the $30,000 for the year? (Show your calculations step-by-step)