Randall Corporation plans to borrow $288,000 for one year at 12 percent from the Waco State Bank. There is a 23 percent compensating balance requirement. Randall Corporation keeps minimum transaction balances of $5,000 in the normal course of business. This idle cash counts toward meeting the compensating balance requirement.

What is the effective rate of interest? (Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.)

Effective rate of interest

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