A loan of $100,000 is made today. The borrower will make equal repayments of $987 per month with the first payment being exactly one month from today. The interest being charged on this loan is constant (but unknown).

For the following two scenarios, calculate the interest rate being charged on this loan, expressed as a nominal annual rate in percentage. Give your answer as a percentage to 2decimal places.

(b) The term of the loan is unknown but it is known that the loan outstanding 2 years later equals to $84216.

Edit: Shreya I'm not sure how much time, the balance of the loan after 2 years is equal to 84216 and we need to find out what the rate is.