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bank loan? The annualized cost of the bank loan is b . ( Round to two decimal places. ) (Related to Checkpoint 18.2) (Estimating the

bank loan?
The annualized cost of the bank loan is
b.(Round to two decimal places.)
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(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 14 percent per annum with interest paid in advance (discounted). In addition, Paymaster must maintain a minimum demand deposit with the bank of 8 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow $100,000 for a period of 6 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.)

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