A loan with the following terms is being made:

Fixed rate, constant monthly payment. Closing date February 9th.

5% interest rate. Prepaid interest due at closing.

$70,000 mortgage loan amount.

$1,500 loan discount points to be paid by the buyer/borrower to the lender.

25-year term, monthly payments, fully amortizing.

Required:

a. Calculate the APR for federal truth-in-lending purposes. (Do not round intermediate calculations. Round your final answer to the nearest one-quarter of a percent.)