(Estimating the cost of bank credit​) Paymaster Enterprises has arranged to finance its seasonal​ working-capital needs with a​ short-term bank loan. The loan will carry a rate of percent per annum with interest paid in advance​ (discounted). In​ addition, Paymaster must maintain a minimum demand deposit with the bank of percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow ​$ for a period of ​months, what is the effective cost of the bank​ loan? Hint​: Assume the Paymaster does not have sufficient funds in the bank to satisfy the compensating balance requirement.