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 $2,600,000 purchase price. The monthly payment on this loan will be $16,700. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Annual percentage rate b. Effective annual rate % %

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 $2,600,000 purchase price. The monthly payment on this loan will be $16,700. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Annual percentage rate b. Effective annual rate % %

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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You are looking to buy a car. You can afford $600 in monthly payments for five years. In addition to the loan, you can make a $700 down payment. If interest rates are 9.25 percent APR, what price of car can you afford (loan plus down payment)? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
After a conversation with your banker, you’ve agreed to a 20% down payment on your $182,188 home. To keep this problem and your calculations relatively brief, assume that the bank has offered you a mortgage loan for $145,750 that carries a 6% interest rate, semiannual payments of $26,905, and a 3-year term. Remember, the process is the same when you are preparing for either 6 semiannual payments of nearly $27,000 or 360 monthly payments of $873.85 for a 30-year conventional mortgage.Complete the following loan amortization table by entering the correct answers. Notes: 1. As all values are denominated in U.S. dollars, you do not have to enter any dollar signs. 2. Round all interest payments down to the nearest whole dollar. 3. Rounding creates a situation in which the numbers in the loan’s final payment are often unequal. Notice in this problem, the ending balance for payment 6 is –$2. Therefore, your final payment would actually be reduced by $2 to $26,903. In the real world,…
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