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Q3) You are looking for a $550,000 mortgage loan for 10-year you would like to have...

Q3) You are looking for a $550,000 mortgage loan for 10-year you would like to have monthly payment. Your Bank told you that currently it's charging a quarterly effective rate of 4%.

  1. What is the APR rate?
  2. What is your monthly payment should be?
  3. How much interest would you have paid at the end of your 10-year mortgage loan?
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Answer #1

Assuming that the rate given is quarterly effective and not EAR.

If it is EAR, then EAR is converted to APR as below,

Work and Formulae

Work and Formulae as above

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