2. In a discount interest loan (HW2), the bank deducts the interest in advance. Thus, the borrower receives less than the face value of the loan. For a 1-year, $10,000 discount loan with 12% nominal rate with annual payment, the interest is $1,200. Therefore, the borrower obtains only $10,000$1,200=$8,800. What is the annual percentage rate and the effective annual rate for this loan