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The treasurer of Aspire to Inspire Incorporated is seeking a $30,000 loan for 180 days from Wrigley Bank and Trust. The stated interest rate is

The treasurer of Aspire to Inspire Incorporated is seeking a $30,000 loan for 180 days from Wrigley Bank and Trust. The stated interest rate is 10 percent and there is a 15 percent compensating balance requirement. The treasurer always keeps a minimum of $2,500 in the firms checking account. These funds could count toward meeting any compensating Balance requirement. What is the effective rate of interest on this loan?

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