18-11 (similar to) E Question Help (Related to Checkpoint 18.3) (Calculating the cost of short term financing) You plan to borrow $40.000 fom the bank to pay for inventories for a gift shop you opened. The bank offors to lend you the money at 12 percent annual interest for the 3 months the funds will be needed (assume a 360-day year) have just a. Calculate the annualized rate of interest on the loan demand deposit account at the bank that can be used c. In addition to the bankrequires you to maintain a 12 percent compensating balance in the bank Because you are just opening your business, you do not have a to meet the compensating-balance requirement. This means that you will have to put 12 percent of the loan the amount (which you had planned to use to help finance the business) in a checking account What is the cost of the loan now? a. The effective rate of interest, or APR on the loan is% (Round to two decimal places) compensating-balance requirement in part b, you are told that interest will be discounted What is the annualized rate of interest on the loan now? Enter your answer in the answer box and then click Check Answer parts remaining Clear All heck MS