First we will find the APR and EAR for the loan with the refundable fee. Remember, we need to use the actual cash flows of the loan to find the interest rate. With the $3,500 application fee, you will need to borrow $223,500 to have $220,000 after deducting the fee. Solving for the payment under these circumstances, we get:
 
        PVA = $223,500 = C {[1 – 1/(1.004583)360]/.004583} where .004583 = .055/12
        C = $1,269.01
 
We can now use this amount in the PVA equation with the original amount we wished to borrow, $220,000. Solving for r, we find:
 
        PVA = $220,000 = $1,269.01[{1 – [1 / (1 + r)]360}/ r]        
        Solving for r with a spreadsheet, on a financial calculator, or by trial and error, gives:
 
         r = 0.4703% per month 
        APR = 12(0.4703%) = 5.64%  
        EAR = (1 + .004703)12 – 1 = 5.79% 
        With the nonrefundable fee, the APR of the loan is simply the quoted APR since the fee is not         considered part of the loan. So:
 
        APR = 5.50%       
        EAR = [1 + (.055/12)]12 – 1 = 5.64%
 
OR

223,500 = PV, N=12x30,
I/Y = 5.5/12, CPT PMT = 1269.01





PV = 220,000, PMT = -1269.01,
N = 360, CPT I/Y = .4703 x 12 =
5.64%

PV = -1, I/Y = 5.64/12, N=12,
CPT FV = 1.05788 – 1 = 5.79%


PV = -1, I/Y = 5.5/12, N=12
CPT FV = 1.0564-1 = 5.64%

Which writer of Corporate Finance?

斯蒂芬a罗斯的

Which chapter and which question number?

第六章练习题的第64题，这是精简版的，第十版