VS P18-11 (similar to) Question Help Related to Checkpoint 18.3) (Calculating the cost of short-term financing) You plan to borrow $10.000 from the bank to pay for inventories for a gift show you have just opened the band offers to and you the money at 12 percent annet for the months the funds wildende (some day year) # Calculate the rate of Worst on the loan Insation, the banks you to maintain a percent compensating balance in the bank Because you westening your business, you do not have a demand deposit account of the bank that can be used to meet the competing increment. This means that you will have to put 14 percent of the loan amount which you had planned to use to help finance the business in a checking account What is the cost of the now? t hadition to the compensating balance requirement in part b. you are told that we will be discounted. What is the annuiteed rate of interest on the loan now? The elective role of enterest, E APR on the loan around to be decimal aces) P18-11 (similar to) Question Ratated to Checkpoint 183) (Calculating the cost of short-term financing) You plan to borrow $10,000 from the bank to pay for inventories for a gift shop you have just opened the bank offers to und you the money at 12 percentar un interest for the months the funds will be needed (assume a 300-day year) Calculate the annualized rate of interest on the loan beditionthe bank requires you to maintain a 14 percent compensating balance in the bank. Because you are just opening your business, you do not have a demand deposit account at the bar hat can be used to meet the compensating balance requirement. This means that you will have to put 14 percent of the loan amount which you had planned to use to help finance the business in a checking account What is the cost of the loan now? c. In nodition to the compensatinoblance tequirement in part be, you are told that interest will be discounted What is the annualized rate of interest on the loan now? The efective role of interest, or APR on the loan is I. (Round to two decimal places)