Problem $8-22($modified$)$

The treasurer of Brandon Blue Sox is seeking a $$37,000$ loan for $180$ days from the Brandon Credit Union. The stated interest rate is $10$ percent and there is a $15$ percent compensating balance requirement. The treasurer always keeps a minimum of $$3,200$ in the firm's chequing account. These funds could count toward meeting any compensating balance requirements.

What is the annual rate of interest on this loan? $($Hint: If the interest rate is $10$ percent per year and you're borrowing the money for less than a year, then the interest cost is a portion of $10$ percent times $$37,000.)($Use $365$ days in a year. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Annual rate of interest $\%$