What is the effective annual rate of warehousing arrangement

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Reference no: EM131566118

Rasputin considering using a public warehouse loan as part of its short term financing. The firm will require a loan of $510,000. Interest on the loan will be 10.4% (APR, annual corresponding), to be paid at the end of year The warehouse charges 1.05% 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?

EAR of this warehousing arrangement is $. (Round one decimal lace.)

Reference no: EM131566118

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