A PLAM Has the Following Terms: Loan Amount: $128,000,real Interest

A PLAM has the following terms: loan amount: $128,000,real interest rate: 5.50%, 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 EOY2: 4%,observed inflation EOY3 through EOY30: 0%.What is the APR of this loan?

A) 5.24%
B) 5.47%
C) 5.55%
D) 5.66%
E) 5.78%