(Estimating the cost 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 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 loan. If Paymaster plans to borrow $120.000 for a period of 3 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 of APR of the bank loan is? 0% (Round to two decimal places)