Efrin Corporation wants to borrow $500,000 for one month. It uses its inventory as collateral for a 16% (quarterly compounded APR) loan, under a warehouse arrangement where the warehouse fee is $15,000, paid at the end of the month. What is the EAR of this loan for Efrin?

Answer rating: 100% (QA)

1 Interest expenseInterestLoan amount 16500000 80000 2 ... View the full answer