Problem:
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,600,000 purchase price. The monthly payment on this loan will be $16,700.
Required:
Question 1: What is the APR on this loan?
Question 2: What is the EAR on this loan?
Note: Show supporting computations in good form.