Question: Please answer both the sections as it is part a and part b of the same question. Mary has just purchased a new house. She

Please answer both the sections as it is part a and part b of the same question.

Please answer both the sections as it is part a and part b of the same question. Mary has just purchased a new house.

Mary has just purchased a new house. She has arranged for a 30-year mortgage loan for 70 percent of the $3,500,000 purchase price to finance her purchase. The monthly payment on this loan will be $30,000. What is the APR on this loan? The EAR? (6 Marks) Josh bought an annuity that pays $20,000 semiannually on Jan 1 2021, with the first payment taking place on June 30 2021, and matures on Dec 31 2041. The interest rate is APR of 2% compounded semiannually. On July 1 2027, Sue wants to buy Josh's annuity. At least how much should Josh charge if he does not want to incur a loss? (6 Marks)

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