What is the effective annual rate of this loan

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Reference no: EM132073471

The Ohio Valley Steel Corporation has borrowed $4.2 million for one month at a stated annual rate of 9.9%, using inventory stored in a field of warehouse as a collateral. The warehouser charges a $6,250 fee, payable at the end of the month. What is the effective annual rate of this loan?

The effective annual rate is ____% (Round to two decimal places)

Reference no: EM132073471

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