(Estimating the cast of bank credit) Paymaster Enterprises has arranged to finance its seasonal working capital needs with a short-term bank loan The loan will carry a rate of 6 percent per annum with interest paid in advance (discounted) In addition Paymaster must maintain a minimum demand deposit with the bank of 9 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow 51,400,000 for a period of 5 months, what is the effective cost of the bank loan? Hint Assume the Paymaster does not have sufficient funds in the bank to satisfy the compensating balance requirement The effective cost, or APR of the bank loan is? O Round to wo decimal places)