You have just borrowed $260,000 to buy a condo. you will repay the loan in equal monthly payments of $2,738.38 over the next 25 years. a. what monthly interest rate are you paying on the loan? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is the apr? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) c. what is the effective annual rate on that loan? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) d. what rate is the lender more likely to quote on the loan?

monthly rate: 1%

APR 12%

effective rate:

r = 12.68%

It will most probably use the APR to quote the loan

Explanation:

The loan will be an ordinary annuity of 2738.38 for 25 years which present value is 260,000

C2,738.38

time300 (25 years x 12 month)

PV$260,000.0000

We use excel or trial and error to find which rate

rate0.009999945 = 0.01 = 1% per month

the APR will be 1% x 12 = 12%

effective rate:

r = 1.12682503 - = 0.1268 = 12.68%

answer; ///the correct answer is (ftc) federal trade commission;

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.