Finance Chap 4 Q41

Excel File

Chapter 4
41	EAR vs APR
	Purchase Price	3900000
	Nper	30	years
	Mortgage	0.8
	Borrowed	3120000	=C7*C5
	PMT	18250
	APR	5.77%	=RATE(C6*12,-C9,C8)*12
	EAR	5.93%	=EFFECT(C11,12)
	Note - 12 is used to annualize the %.