Question: Suppose that a bank does the following: a. Sets a loan rate on a prospective loan with BR = 3.14% and = 2.87%. b. Charges

Suppose that a bank does the following:

a. Sets a loan rate on a prospective loan with BR = 3.14% and = 2.87%. b. Charges a 0.44 percent loan origination fee to the borrower. c. Imposes a 14 percent compensating balance requirement to be held as noninterest-bearing demand deposits. d. Holds reserve requirements of 9 percent imposed by the Federal Reserve on the banks demand deposits.

Calculate the banks ROA on this loan.

Note: Convert your answer to percentage format. Enter your answer rounded to 2 decimals, and without any units. So, for example, if your answer is 3.4568%, then just enter 3.46.

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