New engineering graduate student who started a consulting business borrowed money for 1 year to buy necessary equipment and furnishings. The amount of the loan was $16,000, and it had an interest rate of 11% per year. Because the new graduate student did not have a credit history, the bank made him buy loan default insurance at the cost of 5% of the loan and charged a loan origination fee of $300, both paid up front. What was the effective interest rate that the engineer paid for the loan?