Rasputin considering using a public warehouse loan as part of its short term financing. The firm will require a loan of $510,000. Interest on the loan will be 10.4% (APR, annual corresponding), to be paid at the end of year The warehouse charges 1.05% 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?
EAR of this warehousing arrangement is $. (Round one decimal lace.)