Question: A debtor borrows $ 1 8 , 0 0 0 at 8 % for 1 year, as a condition of the contract, the debtor must

A debtor borrows $18,000 at 8% for 1 year, as a condition of the contract, the debtor must carry a 12% non-interest bearing compensating balance for the term. What is the equivalent simple interest rate being charged?
round answer to 5 decimal places AFTER the decimal point, leave in decimal format (i.e.0.12345)

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