Problem:
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80% of $2,600,000 purchase price. The monthly payment on this loan will be $11,000.
Required:
Question: What is the EAR on this loan?
a. 4.98
b. 5.25
c. 5.46
d. 6.01
e. 6.50
Note: Please show the work not just the answer.