Assume that a financial institution (FI) has issued a one-year loan commitment of 2.5 million for an upfront fee of 25 basis points. The back-end fee on the unused portion of the commitment is 10 basis points. The FI requires a compensating balance of 5 per cent as demand deposits. The FIs cost of funds is 6 per cent, the interest rate on the loan is 10 per cent, and the reserve requirements on demand deposits are 8 per cent. The customer is expected to draw down 80 per cent of the commitment at the beginning of the year. Calculate the expected return on the loan without taking future values into consideration.