Related to Checkpoint 18.3) (Calculating the cost of short have financing) You plan to borrow 540,000 from the bank to pay for inventories for a gift shop yoru plan to b just opened. The bank offers to lend you the money at 12 percent annual interest for the 3 months the funds will be needed (assume a 360-da a. Calculate the annualized rate of interest on the loan b. In addition, the bank requires you to maintain a 12 percent compensating balance in the bank demand deposit account at the bank that can be used to meet the compensating- in the bank. Because you are just opening your business, you do not have a balance requirement This means that you will have to put 12 percent of the loan amount (which you had planned to use to help in a c. In addition to the compensating-balance requirement i prt b, you are told that interest wil be discounted. What is the annualized rate of interest on the loan now? a. The effectve rate of interest, or APR on the loan i (Round to two decimal places) Ip finance the business) in a checking account. What is the cost of the loan now? iVMore Enter your answer in the answer box and then click Check Answer remaining Clear All Check Anw