offers to lend you the money at 9 percent annual interest for the 3 months the fin) You plan to borrow $40,000 from the bank to pay for inventories for a gift shop you have just opened. The bank a. Calculate the annualized rate of interest on the loan. b. In addition, the bank requires you to maintain a 15 percent compensating balance in the bank. Because you are just opening your business, you do not have a demand deposit account at the bank that can be used to meet the compensating-balance requirement. This means that you will have to put 15 percent of the loan amount (which you had planned to use to help finance the business) in a checking account. What is the cost of the loan now? a. The effective rate of interest, or APR, on the loan is 9%. (Round to two decimal places.) b. If the bank requires you to maintain a compensating balance of 15 percent in the bank, the effective annual cost of the loan now is (Round to two decimal places.)