Problem 8-17 Effective rate under different terms [LO8-2]

Your company plans to borrow $8 million for 12 months, and your banker gives you a stated rate of 16 percent interest. Calculate the effective rate of interest for the following types of loans.

d. Discounted interest with a compensating balance of 9 percent. (Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.)