Suppose the estimated linear probability model used by an FI to predict business loan applicant default probabilities is PD = 0.03X₁ + 0.02X₂ - 0.05X₃ + error, where X₁ is the borrower's debt/equity ratio, X₂ is the volatility of borrower earnings, and X₃ is the borrowers profit margin.

For a particular loan applicant, X₁ = 0.8, X₂ = 0.25, and X₃ = 0.10. What is the projected probability of default for the borrower?

Note: Convert your answer to percentage format. Enter your answer rounded to 2 decimals, and without any units. So, for example, if your answer is 3.4568%, then just enter 3.46.

Show work