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Calculating the rate on an amortized loan Suppose you borrow $ 5 0 0 , 0 0 0 to buy a house. If your monthly

Calculating the rate on an amortized loan
Suppose you borrow $500,000 to buy a house. If your
monthly payments on the 15-year mortgage are $4,500,
what interest rate are you paying? State your answer as an
APR
$500,000.00=$4,500.00**1-[1(1+r)180]r,=>r=
0.0059x12=7.02%APR
Suppose you borrow $40,000 to buy a car. If your monthly
payments on the 5-year loan are $800, what interest rate are
you paying? State your answer as an APR
Suppose you borrow $1,000,000 to buy a house. If your
monthly payments on the 30-year mortgage are $5,700,
what interest rate are you paying? State your answer as an
APR
Suppose you borrow $250,000 to buy a house. If your
monthly payments on the 15-year mortgage are $1,900,
what interest rate are you paying? State your answer as an
APR
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