Central City Bank will lend Williams Inc. 69% of the value of its inventory at 13.5% if Williams will pledge the inventory as collateral for the loan. The bank also insists that Williams employ a warehousing company to monitor and control the inventoried material. Blyth Warehousing will do the job for an annual fee of $150,000 plus 2% of the value of all the inventory it handles. Williams moves inventory valued at about $15 million through its plant each year at a turnover rate of five times. What will the cost of financing be under this proposal?

State the result in dollar term. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000, not 1.2. $_____ State the result in percentage (of amount borrowed) term. Round the answer to two decimal places. _____%