EXAMPLE 29 (Annuity with non-level interest rates) Smith borrows $10,000 and will repay the loan with monthly payments for three years, with the first payment to be made one month after the loan is received. The lender has the following schedule for nominal in- terest rates compounded monthly on the loan 1" year 6% 2 year 9% 3 year: 12% Also, Smith's loan payments will have the following pattern 3 vr X+50 per mo 2 yr X+25 per mo I yr: X per mo Determine X