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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

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 11E
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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

 

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
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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