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Maxim Air Filters Inc. plans to borrow $221,000 for one year. Northeast National Bank will lend the money at 11 percent interest and requires a

Maxim Air Filters Inc. plans to borrow $221,000 for one year. Northeast National Bank will lend the money at 11 percent interest and requires a compensating balance of 30 percent.

What is the effective rate of interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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