Problem $8-15($Algo$)$ Compensating balances with idle cash balances $[$LO$8-2]$

Randall Corporation plans to borrow $$257,000$ for one year at $19$ percent from the Waco State Bank. There is a $24$ percent compensating balance requirement. Randall Corporation keeps minimum transaction balances of $$12,000$ in the normal course of business. This idle cash counts toward meeting the compensating balance requirement.

What is the effective rate of interest?

Note: Use a $360-$day year. Input your answer as a percent rounded to $2$ decimal places.

Effective rate of interest