What is the cost of financing for one month, Financial Accounting

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What is the cost of financing for one month

Response to the following problem:

Frich Corporation is considering the use a field warehousing loan, which has a fee of $25,000 up front (that is, at the beginning of the three months of financing) and interest of 8% on all outstanding loans. If Armour borrows $2 million for one month with this field warehousing loan, what is the cost of financing for one month? What is the effective annual cost of using this financing?

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Financial Accounting: What is the cost of financing for one month

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