1. You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 38-year mortgage loan for 70 percent of the $3,380,000 purchase price. The monthly payment on this loan will be $17,100. what is the APR and the EAR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
2. What is the internal rate of return? (IRR) of an investment that requires an initial investment of $12,000 today and pays $16,800 in one? year's time.