Dr. Oz would like to supplement his pension so he calls his insurance company to find about his options. He is told that he could pay $1,000/month for 8 years (making 8 × 12 = 96 payments at end of each month till his retirement) and then he will start receiving $1,500 forever. He will receive the first $1,500 in 8 years and 1 month, i.e. 1 month after he made his last payment; after he passes away his heirs (and their heirs etc.) will continue to receive monthly payments forever.
Determine the annual percentage rate (APR) the bank used to calculate the terms of this deal?