EAR & APR Question – Quick?

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You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 30-year mortgage loan for 85 percent of the $ 2,475,000 purchase price. The monthly payment on this loan will be $ 14,710. Therefore, the APR on this loan is percent and the EAR is percent.

If you point me to a calculator, please ensure it has PAYMENTS and will calculate it off that… I need to find the interest rate. Or if you can just give me the formula… That’ll work as well.

1 Comment
  1. Reply
    May 3, 2011 at 7:26 am

    85*2 475 000/100=2 103 750 the whole amount of loan that you have got
    14 710*12*30=5295600 total money you will pay
    5295600- 2103750=3191850 the extra money that you want to pay
    3191850/30=106395 extra money that you may each year
    2 103 750*100/ 5295600 =39.7% Annual percent rate


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