43. EAR versus APR. You have just purchased a the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,950,000 purchase price. The monthly payment on this loan will be $14.300. What is the APR on this loan? The EAR? V
43. EAR versus APR. You have just purchased a the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,950,000 purchase price. The monthly payment on this loan will be $14.300. What is the APR on this loan? The EAR? V
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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I'M GETTING 0.506159 FROM MY CALCULATOR...NOT SURE WHAT TO DO NEXT...
.BOOK ANSWER IS APR=6.10% AND EAR = 6.27%
IF I UNDERSTAND THIS CORRECTLY IT IS NOT POSSIBL TO DO THIS LONG FORM (WRITTEN OUT) B/C WE DON'T HAVE A DISCOUNT RATE SO WHEN SOLVING FOR PROBLEMS THAT ARE ASKING ABOUT RATE YOU HAVE TO USE THE CALCUATOR. I USE N= 30 AND GET A RESULT = 0.605 ....IS THAT THE APR? I SHOULD BE GETTING .061
Transcribed Image Text:LO 4
first $5.1 million are paid at
43. EAR versus APR. 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 $2,950,000 purchase price. The monthly payment on this loan will be
$14,300. What is the APR on this loan? The EAR?
ning your retirement in 10 years. You
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I keep getting .605932 when I do it on the calculator.
I also don't understand why using FV....I'm receiving 2,360,000 so that should = PV
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