You are given a loan on which interest is charged over a 3 year period as follows:

an effective rate of discount of 6% for the first year

a nominal rate of discount of 5% compounded every 2 years for the second year

a nominal rate of interest of 5% compounded semiannually for the third year

Calculate the annual effective rate of interest over the three years.

** I need a full explanation please and explain why you use every formula.

Thanks