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Need help with E and F NO use 4 percent prime rate and 5-week loan Compost Wholesalers presently uses a public warehouse agreement to finance

Need help with E and F image text in transcribed
NO use 4 percent prime rate and 5-week loan Compost Wholesalers presently uses a public warehouse agreement to finance most of its inventory. The average amount of inventory is $3,000,000, the bank lends Compost's 60 percent of the value of the inventory, and the public warehouse fee is $2,500 per week. Total transportation cost for the loan period is 1.5 percent of the average value of the inventory [that is, (0.015) ($3,000,000)], the bank will loan at 2.5 percent above the prime rate. A. Find the loan amount B. Find the interest C. Find other costs/fees D. Find m and period rate E. Find the annual percentage rate (APR) F. Find the effective annual cost (EAR) A 3 5,000,000 -60% = $1,800,000 B. 4% +25% -6.5% 1,800,000 -6.5%: (5/5)) = $117.000. 5/2=585.00/52 250 c.(* 2.500.5)+($3,000,000 . 1.5%) = $12,500+ $46,000 $57 500 D.6.5%/52 -32.59152 -0.125% per week

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