Fixed rate, constant payment $9\%$ interest rate $$70,000$ desired mortgage amount.

$$1,500$ loan discount points paid by the buyer$/$borrower to the lender $25-$year term, monthly payments

a$.$ Calculate the APR for federal truth$-$in$-$lending purposes $($assume that the disc points are paid up front by the borrow and rolled into the loan principal$).$

Do you think that the APR calculated in $($a$)$ reflects the likely return that the le will receive over the term of the loan? List specific reasons that the lender's a return might be different than the APR.