Suppose you receive an offer from your credit card company to take "cash out" at 0% interest for one year. There is, however, a one-time fee equal to 55% of the amount you cash out. In addition, the credit card company requires that you pay the amount back in 12 equal monthly installments starting in one month. Notice you will have to pay every month one-twelfth of the entire amount borrowed, including the one-time fee. For this question, recall that if an interest rate (r) is paid n times a year, the present value of X dollars paid in T years is (1+)X(1+rn)nT (notice that T could be smaller than 1; for example, =0.5T=0.5 would correspond to 6 months). You should answer this question using a calculator or spreadsheet.

1) Suppose you were to cash out $10,000. The total fee assessed is $500.00, so you will have to make monthly payments of $875.00 to the bank for the next 12 months. Considering the monthly payments you will have to make, the interest rate that would make the net present value of this loan zero is __%. Give your answer to two decimals.