On December 31, 2025, American Bank enters into a debt restructuring agreement with Grouper Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $4,200,000 note receivable by the following modifications: 1. Reducing the principal obligation from $4,200,000 to $3,360,000. 2. Extending the maturity date from December 31, 2025, to January 1, 2029. 3. Reducing the interest rate from 12% to 10%. Grouper pays interest at the end of each year. On January 1, 2029, Grouper Company pays $3,360,000 in cash to American Bank Answer the following questions related to American Bank (creditor). Click here to view factor tables. What interest rate should American Bank use to calculate the loss on the debt restructuring? Interest rate %