What is the apr on this loan-what is the ear on this loan

Assignment Help Financial Management

Reference no: EM13879476

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 %

Reference no: EM13879476

Questions Cloud

Simple interest on investment accounts : First Simple Bank pays 8.3 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should the bank set if it wants to match First Simple Bank over an investment horizon of 13..

Identify at least three methods for allocating costs : Identify at least three methods for allocating costs? When is each method used? What are the pros and cons of each? How is it related to cost allocation?

What is the present value of the second option : You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $8,300 per month for the next three years, or you can have $7,000 per month for the next three years, alon..

Describe five features of each movement : Describe five features of each movement, explaining their similarities and differences and explain how these two movements are related to previous artwork or artists.

What is the apr on this loan-what is the ear on this loan : 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. What is the APR on this loan? What is th..

Critical radius associated with the coating : A Bakelite coating is to be used with a 10-mm-diameter conducting rod, whose surface is maintained at 200°C by passage of an electrical current. The rod is in a fluid at 25°C, and the convection coefficient is 140 W/m2 · K. What is the critical ra..

What percent did the nominal value of the dollar change : All interest rates are given as p.a. You must a just to the period. Take money and interest rates to four decimals before rounding. During 1995, the Mexican peso to Us dollar exchange rate changed from Mex$5.33/U.S.$ to Mex$7.46/U.S.$. At the same ti..

Paper on a contemporary issue in individual counseling : Contemporary Issue in Individual Counseling Paper - Write a 1,050- to 1,400-word paper on a contemporary issue in individual counseling

Describe the companys revenue recognition policy : Describe the company's revenue recognition policy. For the most recent year, what is/are the major sources of revenue account for this company?

User Account

All Pages