Question: The Rasputin Brewery is considering using a public warehouse loan as part of its short-term financing. The firm will require a loan of $500,000. Interest

The Rasputin Brewery is considering using a public warehouse loan as

The Rasputin Brewery is considering using a public warehouse loan as part of its short-term financing. The firm will require a loan of $500,000. Interest on the loan will be 10.2% (APR, annual compounding), to be paid at the end of the year. The warehouse charges 1.01% 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 EAR of this warehousing arrangement is \%. (Round to one decimal place.)

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