You are a new loan officer with Alpha Mortgage, and the manager of the loan department has just presented a problem to you. He Is unable to complete the APR calcutation on an adjustable rate mortgege that a borrower applifed for yosterday. The toan features initial payments based on a 5 percent rate of interest at loan closing. The current composite rate on the loan is 7 percent. Two discount points have been pald by the borrower. Any difference between borrower payments and the interest payment required at the composite rate will be accrued in the mortgage baliance in the form of negative amortization. The mortgage amount desired by the borrower is $70,500 for a 30 -year term. Required: Determine the APR, assuming that the ARM is made with a 2 percent annual and 5 percent over-the-life interest rate cap. Note: Do not round intermedlate calculations. Round your answer to 1 decimal place