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Company A has borrowed $5,138,760 for one month at a stated annual rate of 9.01%, using inventory stored in a field warehouse as collateral. The

Company A has borrowed $5,138,760 for one month at a stated annual rate of 9.01%, using inventory stored in a field warehouse as collateral. The warehouser charges a $6,075 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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