The Kind Store is planning to borrow some funds for the next 9 months. They do not know how much they will need as they would like to build a new office and are currently getting quotes from different builders. Kelowna Credit Union is wiling to lend to them at 4% but will require a 10% compensating balance. Find the annual effective rate of interest. Round you answer to 2 decimal places (e.g. 4.25%)