I'M GETTING 0.506159 FROM MY CALCULATOR...NOT SURE WHAT TO DO NEXT....BOOK ANSWER IS APR=6.10% AND EAR = 6.27%IF I UNDERSTAND THIS CORRECTLY IT IS NOT POSSIBL TO DO THIS LONG FORM (WRITTEN OUT) B/C WE DON'T HAVE A DISCOUNT RATE SO WHEN SOLVING FOR PROBLEMS THAT ARE ASKING ABOUT RATE YOU HAVE TO USE THE CALCUATOR. I USE N= 30 AND GET A RESULT = 0.605 ....IS THAT THE APR? I SHOULD BE GETTING .061 LO 4first $5.1 million are paid at43. EAR versus APR. You have just purchased a new warehouse. To financethe purchase, you've arranged for a 30-year mortgage loan for 80 percent ofthe $2,950,000 purchase price. The monthly payment on this loan will be$14,300. What is the APR on this loan? The EAR?ning your retirement in 10 years. You

Particulars Values Purchase price 2950000 Time period 30 years Monthly payment 14300 To…

Answered: 43. EAR versus APR. You have just…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 8FPE

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I'M GETTING 0.506159 FROM MY CALCULATOR...NOT SURE WHAT TO DO NEXT...

.BOOK ANSWER IS APR=6.10% AND EAR = 6.27%

IF I UNDERSTAND THIS CORRECTLY IT IS NOT POSSIBL TO DO THIS LONG FORM (WRITTEN OUT) B/C WE DON'T HAVE A DISCOUNT RATE SO WHEN SOLVING FOR PROBLEMS THAT ARE ASKING ABOUT RATE YOU HAVE TO USE THE CALCUATOR. I USE N= 30 AND GET A RESULT = 0.605 ....IS THAT THE APR? I SHOULD BE GETTING .061

LO 4
first $5.1 million are paid at
43. EAR versus APR. You have just purchased a new warehouse. To finance
the purchase, you've arranged for a 30-year mortgage loan for 80 percent of
the $2,950,000 purchase price. The monthly payment on this loan will be
$14,300. What is the APR on this loan? The EAR?
ning your retirement in 10 years. You

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I keep getting .605932 when I do it on the calculator.

I also don't understand why using FV....I'm receiving 2,360,000 so that should = PV

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