(Reilated to Checkpoint 18.3) (Calculating the cost of short-term financing) You plan to borrow 520,000 tiom the bank to pay for invertocies for a gilt shop yoa hare just opened. The bank offers to lend you the money at 10 percent annual interest foc the 6 months the funds will be needed (assume a 360 -dxy year) a. Calculate the annualzed rate of interest on the loan. b. In adidition. the bank requires you to maintain a 16 percent compensating balance in the bank. Because you are just opening your business, you do not have a demand deposit account at the bank that can be ueed to meet the compensating-balance recaliement. This means that you will have to put 16 percent of the loan aimount fatich yos had pianned to use to help finance the business) in a checking account. What is the cost of the loan now? c. In addition to the compensating-balance recuirement in part b. you are told that interest will be discounted. Woat is the annualiced rase of interest on the loan nose? a. The eflective rate of interest, of APR, on the loan is 4. (Round to two decimal places)