What is effective annual rate of warehousing? arrangement

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Reference no: EM131832428

The Rasputin Brewery is considering using a public warehouse loan as part of its? short-term financing. The firm will require a loan of $570,000. Interest on the loan will be 10.2% ?(APR, annual? compounding), to be paid at the end of the year. The warehouse charges 0.99% of the face value of the? loan, payable at the beginning of the year. What is the effective annual rate? (EAR) of this warehousing? arrangement?

Reference no: EM131832428

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