Rico needs approximately $2,600 to buy a new computer. A two-year unsecured loan through the credit union is available for 13.00 percent interest. The current rate on his revolving home equity line is 9.75 percent, although he is reluctant to use it. Rico is in the 15 percent federal tax bracket and the 5.75 percent state tax bracket. Which loan should he choose? Why? Regardless of the loan chosen, Rico wants to pay off the loan in 24 months.

The after-tax cost of the home equity loan is?

(Round to two decimal places.)