A loan with the following terms is being made:
Fixed rate, constant monthly payment. Closing date March 9th.
8% interest rate. Prepaid interest due at the closing.
$80,000 mortgage loan amount
$1,500 loan discount payments to be paid by the buyer/borrower to the lender.
25-year term, monthly payment, fully amortizing.
a. Calculate the APR for federal truth-in-lending purposes.