You have just purchased a new warehouse

You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80% of the $1 200 000 purchase price. The monthly payments on this loan will be $9 300. What is the APR on this loan? The EAR?

Purchase price= $1,200,000
80% of purchase price= $960,000
Number of months= 360 =30*12
Monthly payment= $9,300

Therefore PVIFA (r%, 360)= 103.2258 =960000/9300

This corresponds to r= 0.9350% and annual rate (APR)= 11.22%

EAR= 11.82% =(1+.935%)^12 -1

Frequency= M Monthly
No of years= 30
No of Periods= 360
Discount rate annually= 11.22% annual
Discount rate per period= 0.9350% Monthly
n= 360
r= 0.94%
PVIFA (360 periods, .935% rate ) = 103.20089

Answer:
APR= 11.22%
EAR= 11.82%

4) A local finance company quotes a 13 percent interest rate on one year loans. So if you borrow $20 000, the interest would be $2 600. Because you must repay a total of $22 600 in one year, the company requires monthly payments of $1883.33 for the next 12 months. Is this a 13% loan? What rate legally would be quoted? What is the EAR?

Principal= $20,000
Number of months= 12
Monthly payment= $1,883.33

Therefore PVIFA (r%, 12)= 10.6195 =20000/1883.33

This corresponds to r= 1.9167% and annual rate (APR)= 23.00%

EAR= 25.59% =(1+1.9167%)^12 -1

Frequency= M Monthly
No of years= 1
No of Periods= 12
Discount rate annually= 23.00% annual
Discount rate per period= 1.9167% Monthly
n= 12
r= 1.92%
PVIFA (12 periods, 1.9167% rate ) = 10.629667

Answer:
APR= 23.00% (the rate that would legally be quoted)
EAR= 25.59%