What is the return to the bank on these loans

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Reference no: EM131616042

Metrobank offers one-year loans with a 13 percent stated rate, charges a 1/2 percent loan origination fee, imposes a 7 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?

Reference no: EM131616042

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