Suppose that a bank does the following:

a. Sets a loan rate on a prospective loan with BR = 8.27% and = 3.16%. b. Charges a 0.35 percent loan origination fee to the borrower. c. Imposes a 5 percent compensating balance requirement to be held as noninterest-bearing demand deposits. d. Holds reserve requirements of 9 percent imposed by the Federal Reserve on the banks demand deposits.

Calculate the banks ROA on this loan.