(Estimating the cost of bankordi) Paymaster Enterprises has arranged to finances seasonal working capital needs with a short-term bank loan. The loan will carry a rate of 20 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 form of the loan. If Paymaster plans to borrow $110,000 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, Or APR of the bank loan is? E (Round to two decimal places)