Morgan Contractors borrowed $2.60 million at an APR of 5.0 percent. The loan called for a compensating balance of 9 percent. What is the effective interest rate on the loan? (Round intermediate calculations to 4 decimal places, e.g. 1.2541 and final answer to 2 decimal places, e.g. 12.25%.)

The effective interest rate on the loan is_______%

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