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Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a Short-term bank loan. The loan will carry a rate of 13 percent per

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Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a Short-term bank loan. The loan will carry a rate of 13 percent per annum with interest paid in advance(discounted). In addition, Paymaster must maintain a minimum demand deposit with the bank of 11 percent of the loan balance throughout the term the loan. If Paymaster plans to borrow $120,000 for a period of 6 months, what is the annualized cost of the bank loan? The annualized cost of the bank loan is %.(Round to two decimal places.)

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