83 Fake Street Inc. just borrowed $2,000,000 from their bank at a stated rate of 8%. The terms of the loan required a 10% compensating balance and an upfront processing fee of 1% of the balance. The loan is due in nine months with no interest payments until maturity. B3 has no other balances that could be used to offset the compensating balance. 1 T. B I 15 15 P2 What is the effective interest rate of this loan? Answers Show supporting calculations below: I G M C 2