The bank has determined the information below for one of its customers

The bank has determined the information below for one of its customers. This customer wants to borrow $1,000,000 but will maintain an average deposit balance in its account of $200,000. What is the expected net rate of return on this loan? Expected Revenues Interest Revenues Commitment Fee Deposit Service Fees Agency Fees Expected Costs $1,000,000 Deposit Interest $30,000 $15,000 Cost of Other Funds Raised 5885,000 $5,000 Loan Processing Costs $8000 $6000 Activity and Record Keeping Costs $10,000 10.88 percent 14.00 percent 10.25 percent 12.75 percent None of the above