Randall Corporation plans to borrow $250,000 for one year at 21 percent from the Waco State Bank. There is a 29 percent compensating balance requirement. Randall Corporation keeps minimum transaction balances of $16,000 in the normal course of business. This idle cash counts toward meeting the compensating balance requirement.

What is the effective rate of interest? (Use 360 days in a year. Round your answer to 2 decimal places. Omit the "%" sign in your response.)