The Abhee H. Reatail is considering using a public warehouse loan as part of its short-term financing. The firm will require a loan of C$1,000,000. Interest on the loan will be 15% (APR, anually coumpounding) to be paid at the end of the year. The warehouse charges 1% of the face value of the loan, payable at the begining of the year. What is the effective annual rate of this warehousing arrangement? (show your calculations)