A PLAM has the following terms: loan amount: $275,000, real interest rate: 5.50%, 30- year term, 2.00 discount points, monthly payment in year one is $1,561.42 and monthly payment in year two is $1,600.45, observed inflation EOY2: 4%, observed inflation EOY3 through EOY30: 0%. 

What is the APR of this loan?

Answer rating: 100% (QA)

SOLUTION To find the APR of this loan we need to use a formula that takes into account the loan amou... View the full answer