A Bank Has Determined the Information Below for One of Its

A 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? $$\begin{array} { l r l r } { \text { Expected Revenues } } & &\quad\quad\quad\quad{ \text { Expected Costs } } \\\text { Interest Revenues } & \$ 1,000,000 & \text { Deposit Interest } & \$ 30,000 \\\text { Commitment Fee } & \$ 15,000 & \text { Cost of Other Funds Raised } & \$ 890,000 \\\text { Deposit Service Fees } & \$ 5,000 & \text { Loan Processing Costs } & \$ 8,000 \\\text { Agency Fees } & \$ 6,000 & \text { Activity and Record Keeping } & \$ 16,000 \\& & \text { Costs } &\end{array}$$

A) 10.00 percent
B) 8.20 percent
C) 10.25 percent
D) 13.75 percent
E) None of the options is correct.