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Maxim Air Filters Incorporated plans to borrow $ 2 9 2 , 0 0 0 for one year. Northeast National Bank will lend the money

Maxim Air Filters Incorporated plans to borrow $292,000 for one year. Northeast National Bank will lend the money at 16 percent interest and requires a compensating balance of 21 percent.
What is the effective rate of interest?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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