Carter Bank has placed 5,000 consumer loans in a package to be securitized. These loans have an annual yield of 14.85 percent. The bank estimates that the securities on these loans are priced to yield 8.75 percent. The banks default (charge-off) rate on the pooled loans is expected to be 1.35 percent. Underwriting and advisory services will cost 0.26 percent, and a credit guarantee, if more loans default than expected, will cost 0.45 percent. What is the residual income (%) from this loan securitization?

Please show your work. Write your answers with two decimal points