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please solve both problems The Ohio Valley Steel Corporation has borrowed $5.5 million for one month at a stated annual rate of 8.4%, using inventory
please solve both problems The Ohio Valley Steel Corporation has borrowed $5.5 million for one month at a stated annual rate of 8.4%, using inventory stored in a field warehouse as collateral. The warehouser charges a $5,500 fee, payable at the end of the month. What is the effective annual rate of this loan? The effective annual rate is \%. (Round to two decimal places.) The Rasputin Brewery is considering using a public warehouse loan as part of its short-term financing. The firm will require a loan of $540,000. Interest on the loan will be 9.5% (APR, annual compounding) to be paid at the end of the year. The warehouse charges 0.96% of the face value of the loan, payable at the beginning of the year. What is the effective annual rate (EAR) of this warehousing arrangement? The effective annual rate is %. (Round to two decimal places.)
please solve both problems
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