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What is the apr of loan

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A PLAM (price level adjusted mortgage) 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 end of year 2: 4%, observed inflation end of year 3 through end of year 30: 0%. What is the APR of this loan?

Reference no: EM132794050

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