Problem 8-16 Compensating balances with idle cash balances (LO2] The treasurer for the Macon Blue Sox baseball team is seeking a $23,600 loan for one year from the 4th National Bank of Macon. The stated interest rate is 10 percent, and there is a 15 percent compensating balance requirement. The treasurer always keeps a minimum of $2,280 in the baseball team's checking accounts. These funds count toward meeting any compensating balance requirements. What will be the effective rate of interest on this loan? (Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.) Input variables: Loan amount Loan term Interest rate Compensating balance requirement Minimum cash balance Days in year $23,600 360 days 0.10 0.15 $2,280 360 days Solution and Explanation: Interest