Your uncle Fred just purchased a new boat. He brags to you about the low 7.2% interest rate (APR, monthly compounding) he obtained from the dealer. The rate is even lower than the rate he could have obtained on his home equity loan (7.8% APR, monthly compounding). If his tax rate is 26% and the interest on the home equity loan is tax deductible, which loan is truly cheaper? The after-tax cost on the home equity loan is %. (Round to two decimal places.)