Green's Wholesalers presently uses an 80-day public warehouse agreement to finance most of its inventory. The average amount of inventory is $2,000,000, the bank lends Green's 70 percent of the value of the inventory, and the public warehouse fee is $200 per day. Total transportation costs for the 80-day period make up 1 percent of the average value of the inventory [that is, (0.01)($2,000,000)], the prime rate is 4 percent, and the bank will loan at 6.5 percent above the prime rate.

Find the loan amount Find the interest Find other fees Find the annual percentage rate (APR)

Find the effective annual cost (EAR)