Question
Company A has borrowed $5,112,362 for one month at a stated annual rate of 9.55%, using inventory stored in a field warehouse as collateral. The
Company A has borrowed $5,112,362 for one month at a stated annual rate of 9.55%, using inventory stored in a field warehouse as collateral. The warehouser charges a $6,190 fee, payable at the end of the month. What is the effective annual rate of this loan?
NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign.
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The Oxford Handbook Of The Sociology Of Finance
Authors: Karin Knorr Cetina, Alex Preda
1st Edition
0198708777, 978-0198708773
