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The Rasputin Brewery is considering using a public warehouse loan as part of its​ short-term financing. The firm will require a loan of $ 500 comma 000. Interest on the loan will be 10.0 % ​(APR, annual​
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The Rasputin Brewery is considering using a public warehouse loan as part of its​ short-term financing. The firm will require a loan of $ 500 comma 000. Interest on the loan will be 10.0 % ​(APR, annual​ compounding) to be paid at the end of the year. The warehouse charges 1.00 % 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?

User Manish Punia
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Explanation

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The Rasputin Brewery is considering using a public warehouse loan as part of its​ short-example-1
User SanBez
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