bank loan?

The annualized cost of the bank loan is

$($Round to two decimal places.$)$

(Related to Checkpoint 18.2) (Estimating the cost of bank credit) Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loam The loan will carry a rate of 16 percent per annum with interest paid in advance (discounted). In addition, Paymaster must maintain a minimum demand deposit with the bank of 10 percent of the loan balance throughout the term of the loam If Paymaster plans to borrow $120,000 for a period of 2 months, what is the annualized cost of the bank loan? The annualized cost of the bank loan is 00/0. (Round to two decimal places.)