Commercial paper is usually sold at a discount. Fan Corporation has just sold an issue of 105-day commercial paper with a face value of $1.5 million. The firm has received initial proceeds of $1,476,040. If a brokerage fee of $13,721 was paid from the initial proceeds to an investment banker for selling the issue, what effective annual rate will the firm pay, assuming that the paper is rolled over every 105 days throughout the year? (assume a 365-day year)