(Select from the drop-down menus.) The monthly interest rate is so Ohio Valley Steel must pay in interest on the loan. Combining this with the $4,600 warehouser fee makes the monthly cost of the loan Since the fee is paid at the end of the month, Ohio Valley Steel has use of the full $5,100,000 for the month. The interest rate per period is There are 12 months in a year, so the effective annual rate is