You have just purchased a new warehouse. To finance the purchase, youve arranged for a 33-year mortgage loan for 85% of the $3,230,000 purchase price.
You have just purchased a new warehouse. To finance the purchase, youve arranged for a 33-year mortgage loan for 85% of the $3,230,000 purchase price. The monthly payment on this loan will be $15,600.
- How much do you borrow from bank to purchase the warehouse?
- What is the periodic interest rate of the mortgage loan?
- What is the APR quoted by the bank?
- What is the EAR of the loan?
Please provide steps and analysis associated with your answers for the questions above.
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Authors: William Brueggeman, Jeffrey Fisher
16th Edition
1259919684, 978-1259919688
