.10% If it was simple interest, then you need to take .001 and multiply it by the $88,000 to compute the interest for a year. That would be your $88. Then divide by 12 for the months, for your $7.33. Another way to get the month's interest would be to divide the $88 by 365 and then multiply that amount by the number of days in the month.
Yup, you are correct. The bank has ripped off the church, go figure. Banks can be really nasty lately. Good luck in getting this straightened out.