Winegartner Cosmetics is setting up a line of credit at its bank for $5 million for up to two years. The interest rate is 4.93 percent and the loan agreement calls for an annual fee of 39 basis points on any unused balance for the year. If the firm borrows $2.0 million on the day the loan agreement is signed, what is the effective rate for the line of credit? (Round intermediate calculations to 4 decimal places, e.g. 1.2541 and final answer to 2 decimal places, e.g. 12.25%.) The firm's effective rate is %