MISC Berhad is experiencing cash flow problems of about RM0.5 million. Due to this situation, the company was unable to take advantage to grab the discount payment within 20 days from a trade creditor. The company has stretched the payment to 45 days. On the other hand, Maybank has offered a loan to alleviate the companys cash flow problems. The loan has a 12 percent discounted interest and requires a 10 percent compensating balance. Determine the effective annual cost of the bank loan offered