Question
You have just purchased a new warehouse. To finance the purchase, youve arranged for a 35-year mortgage loan for 75 percent of the $3,250,000 purchase
You have just purchased a new warehouse. To finance the purchase, youve arranged for a 35-year mortgage loan for 75 percent of the $3,250,000 purchase price. The monthly payment on this loan will be $15,800.
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).)
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).)
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