Metrobank offers 1-year loans with a 9 percent stated rate, charges a percent loan origination fee,

Metrobank offers 1-year loans with a 9 percent stated rate, charges a ¼ percent loan origination fee, imposes a 10 percent compensating balance requirement, and must pay a 6 percent reserve requirement to the Federal Reserve. What is the return to the bank on these loans? (LG 21-6)

AppendixLO1