Paymaster Enterprises has arranged to finance its seasonalworking-capital needs with ashort-term bank loan. The loan will carry a rate of 12 percent per annum with interest paid in advance(discounted). Inaddition, Paymaster must maintain a minimum demand deposit with the bank of 11 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow $90,000 for a period of 6 months, what is the annualized cost of the bankloan?

The annualized cost of the bank loan is ______%. (Round to two decimalplaces.)