You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 31-year mortgage loan for 75 percent of the $3,210,000 purchase price. The monthly payment on this loan will be $15,400. a.What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)b.What is the EAR on this loan?

The annual interest rate that is charged by the lenders or at which the investors earn additional…

Answered: You have just purchased a new…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 31-year mortgage loan for 75 percent of the $3,210,000 purchase price. The monthly payment on this loan will be $15,400.

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

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