Question: Problem 4 - 4 1 EAR versus APR You have just purchased a new warehouse. To finance the purchase, you've arranged for a 2 5

Problem 4-41 EAR versus APR
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year mortgage for 75 percent of the
$3,000,000 purchase price. The monthly payment on this loan will be $17,100.
a. What is the APR on this loan?
b. What is the EAR on this loan?
Note: For all requirements, do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal
places, e.g.,32.16.
a. APR
b. EAR
Problem 4-41 EAR versus APR You have just purchased a new

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