You have just borrowed $100,000 to buy a condo. You will repay the loan in equal monthly

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You have just borrowed $100,000 to buy a condo. You will repay the loan in equal monthly payments of $804.62 over the next 30 years.

a. What monthly interest rate are you paying on the loan? What is the APR?

b. What is the effective annual rate on that loan?

c. What rate is the lender more likely to quote on the loan?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:10 AM

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You have just borrowed $100,000 to buy a condo. You will repay the loan in equal monthly

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a You are repaying the loan with payments in the form of an annuity The present value o...View the full answer

Fundamentals of Corporate Finance

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