The Rasputin Brewery is considering using a public warehouse loan as part of its short-term financing. The firm will require a loan of $250,000. Interest on the loan will be 9% (APR, annual compounding) to be paid at the end of the year. The warehouse charges 1% of the face value of the loan, payable at the beginning of the year. What is the effective annual rate (EAR) of this warehousing arrangement?

Answer: The effective annual rate is ________%. (Round to two decimal places.)