What is the return to bank on these loans

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Reference no: EM132037983

Metrobank offers one-year loans with a 11 percent stated rate, charges a 1/2 percent loan origination fee, imposes a 10 percent compensating balance requirement, and must pay a 6 percent reserve requirement to the Federal Reserve. What is the return to the bank on these loans? (Do not round intermediate calculations. Round your answer to 1 decimal place.(e.g., 32.1))

Rate of return %

Reference no: EM132037983

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