Stationery Supplies uses a 24 percent annual interest rate to represent the cost of capital, and pays a liability insurance for 2% monthly rate of the value of the office supplies. The holding cost consists of both cost of capital and liability insurance cost. Determine the monthly holding cost rate:  ____%.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Stationery Supplies uses a 24 percent annual interest rate to represent the cost of capital, and pays a liability insurance for 2% monthly rate of the value of the office supplies. The holding cost consists of both cost of capital and liability insurance cost. Determine the monthly holding cost rate:  ____%. 

 

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