A loan of $100,000 is made today. The borrower will make equalrepayments of $3418.16 per month with the first payment beingexactly one month from today. The interest being charged on thisloan is constant (but unknown).
For the following two scenarios, calculate the interest ratebeing charged on this loan, expressed as a nominal annual rate inpercentage:
(a) The loan is fully repaid exactly after 33 monthlyrepayments, i.e., the loan outstanding immediately after 33repayments is exactly 0.
(b) The term of the loan is unknown but it is known that theloan outstanding 2 years later equals to $32254.82.
