ADKK Stores estimates that it needs additional 2 Million in the month of April 2018. It has approached Ching Ping Bank that offers the following:

Issue of RM2 million of 60-day commercial paper at a 9 percent per annum interest rate, plus a transactions fee of 0.5 per cent. Since the funds are required for only 30 days, the excess funds (RM2 million) can be invested in 9.4 per cent per annum marketable securities for the month of May. The total transactions cost of purchasing and selling the marketable securities is 0.4 percent of the amount of the issue.

Calculate the cost of financing ADKK has to incur if it chooses to accept the above offer.