The treasurer for the Macon Blue Sox baseball team is seeking a $29,400 loan for one year from the 4th National Bank of Macon.
The stated interest rate is 20 percent, and there is a 21 percent compensating balance requirement. The treasurer always keeps a minimum of $1,960 in the baseball team's checking accounts. These funds count toward meeting any compensating balance requirements.
What will be the effective rate of interest on this loan? (Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.)