You have just purchased a new warehouse. To finance the purchase, you've arranged for a 35-year mortgage loan for 85 percent of the $3,350,000 purchase price. The monthly payment on this loan will be $16,800. Requirement 1: What is the APR on this loan? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) APR Requirement 2: What is the EAR on this loan? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) EAR %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You have just purchased a new warehouse. To finance the purchase, you've arranged for
a 35-year mortgage loan for 85 percent of the $3,350,000 purchase price. The monthly
payment on this loan will be $16,800.
Requirement 1:
What is the APR on this loan? (Round your answer as directed, but do not use rounded
numbers in intermediate calculations. Enter your answer as a percent rounded to
2 decimal places (e.g., 32.16).)
APR
%
Requirement 2:
What is the EAR on this loan? (Round your answer as directed, but do not use rounded
numbers in intermediate calculations. Enter your answer as a percent rounded to 2
decimal places (e.g., 32.16).)
EAR
%
Transcribed Image Text:You have just purchased a new warehouse. To finance the purchase, you've arranged for a 35-year mortgage loan for 85 percent of the $3,350,000 purchase price. The monthly payment on this loan will be $16,800. Requirement 1: What is the APR on this loan? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) APR % Requirement 2: What is the EAR on this loan? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) EAR %
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