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You have just purchased a new warehouse. To finance the purchase, youve arranged for a 25-year mortgage loan for 85 percent of the $2,400,000 purchase

You have just purchased a new warehouse. To finance the purchase, youve arranged for a 25-year mortgage loan for 85 percent of the $2,400,000 purchase price. The monthly payment on this loan will be $16,500.

What is the APR on this loan? What is the EAR on this loan?

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