You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 25-year mortgage loan for 75 percent of the $3,300,000 purchase price. The monthly payment on this loan will be $17,400. a.What is the APR on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)b.What is the EAR on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

a) APR on the loan can be calculated using the RATE function in the excel as below: Answer: APR…

Answered: You have just purchased a new…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 25-year mortgage loan for 75 percent of the $3,300,000 purchase price. The monthly payment on this loan will be $17,400.

a.	What is the APR on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	What is the EAR on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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