Monsu Bank is currently faced with high demand for additional new loans: $40m in household loans, and $20m in business loans. The bank has decided to finance this new pool of loans using the following funding mix:

• Household loans to be funded by savings deposits (20%), fixed deposits (70%), and equity (10%);
• Business loans to be funded by fixed deposits (30%), certificates of deposit (55%), and equity (15%).

Calculate the pooled marginal cost of funds for the business loan funding mix in percentage terms, given the following information for Monsu Bank:

Funding Source	Marginal Cost of Funds (per annum)
Savings deposits	3%
Fixed deposits	7%
Certificates of deposit	10%
Equity	15%