You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 25-year mortgage for 75 percent of the $4,200,000 purchase price. The monthly payment on this loan will be $18,300. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- print Print
- list Cite
Expert Answers
uwais17
| Certified Educator
calendarEducator since 2016
write68 answers
starTop subjects are Math, Social Sciences, and Science
The question requires us to find the APR on the loan. APR is the Annual percentage rate. It is basically the amount charged for borrowing (a loan) or amount made by investing (an investment).
This question is an example of an annuity. Annuities are defined as a series of fixed payments made by you or made to you over a fixed period of time. The common payment periods are yearly, semi-annually, quarterly or monthly.
This question is a typical case of present value...
(The entire section contains 224 words.)
Unlock This Answer Now
Start your 48-hour free trial to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.
Related Questions
- You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 34-year...
- 1 Educator Answer
- Eden finances a purchase of $611.03 by making monthly payments of $26.17 for 2.5 years. What...
- 1 Educator Answer
- Vanna has just financed the purchase of a home for $200,000. She agreed to repay the loan by...
- 1 Educator Answer
- Juan paid $7000 for a new car. 20% was his downpayment he financed the rest with a 36 month fixed...
- 1 Educator Answer
- The purchase price of a property is $195,000. What are the required monthly repayments for the...
- 1 Educator Answer