A) You have just purchased a new warehouse. To finance the purchase, youve arranged for a 25-year mortgage for 75 percent of the $4,700,000 purchase price. The monthly payment on this loan will be $27,700. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

1) What is the APR on this loan?

Annual percentage rate _________%

2) What is the EAR on this loan?

Effective annual rate ________%

B)

Given an interest rate of 5.8 percent per year, what is the value at date t = 10 of a perpetual stream of $2,200 annual payments that begins at date t = 20? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)

Perpetuity value ___________ $