In commercial real estate financing, it is common to assume…
In commercial real estate financing, it is common to assume each month has 30 days and each year has 360 days (not surprisingly, this method is called 30/360). Suppose you are offering a commercial real estate loan to a customer with an APR of 9.00% with DAILY compounding of interest. The loan that requires no money down and MONTHLY payments of $4,000 for five years starting one month from today. What is the correct interest rate r to use in the annuity formula?