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A PLAM has the following terms: loan amount: $128,000, real interest rate: 5.50%, 30- year term, 2.50 discount points, monthly payment in year one is
A PLAM has the following terms: loan amount: $128,000, real interest rate: 5.50%, 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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