Now, you have refundable application fee of $1,000. You should include this in your calculation to get the right APR and EAR. One thing to notice is that even if you put the money upfront, you will have to pay the same amount of money on a monthly basis. In this case, proceeds = 149,000(150,000-1,000), monthly payment = 1,153.37, number of months = 360, and monthly rate=you don't know yet.
Again, PV=C*(1-1/(1+r)^t)/r. Plug in everything you've got. 149,000 = 1153.37 * (1-1/r^360)/r. This formula will give you 0.714394, which is the effictive monthly rate. Multiply it with 12, the you will get APR 8.5727%. And then use the formula EAR = (1+APR/12)^12 - 1, then it will give you EAR 8.9177%. Hope this helps!!
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