Question
A PLAM has the following terms: loan amount: $128,000, real interest rate: 5.5%, 30-year term, 2.50 discount points, monthly payment in year one is $726.77
A PLAM has the following terms: loan amount: $128,000, real interest rate: 5.5%, 30-year term, 2.50 discount points, monthly payment in year one is $726.77 and monthly payment in year two is $704.97, observed inflation EOY2: 4%, observed inflation EOY3 through EOY30: 0%. What is the APR of this loan?
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
