Financing Cost of Inventory. Blake Company desires to finance its $300,000 inventory. Funds are required for 4 months. Under consideration is a warehouse receipt loan at an annual interest rate of 17...

Financing Cost of Inventory. Blake Company desires to finance its $300,000 inventory. Funds are required for 4 months. Under consideration is a warehouse receipt loan at an annual interest rate of 17 percent, with an 85 percent advance against the inventory’s value. The warehousing cost is $5,000 for the 4-month period. Determine the financing cost.