Sheridan Cosmetics management is setting up a line of credit at the companys bank for $5 million for up to two years. The interest rate is 7.90 percent and the loan agreement calls for an annual fee of 62 basis points on any unused balance for the year. If the firm borrows $2.3 million on the day the loan agreement is signed, what is the effective rate for the line of credit? (Round answer to 2 decimal places, e.g. 12.25%.)