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You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,300,000 purchase

You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,300,000 purchase price. The monthly payment on this loan will be $12,000.

Required:

(a)What is the APR on this loan?(Click to select)

6.80%

7.48%

4.75%

6.60%

6.12%

(b)What is the EAR?

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