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5. A loan for an amount of 1, 000 euro is paid with ten monthly payments of constant value R at the nominal interest rate
5. A loan for an amount of 1, 000 euro is paid with ten monthly payments of constant value R at the nominal interest rate r = 8% (compounded monthly), starting 6 months from now.
(a) Compute the periodic payment R.
(b) In addition to the payments R, there are 30 euro of initial expenses (paid at time 0) and 1.5 added to each payment. Compute the APR of the loan.
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