Final answer:
To determine the nominal and effective interest rates on a loan, we need more information about the principal amount and payment. The effective interest rate accounts for compounding, while the nominal interest rate does not.
Step-by-step explanation:
In order to find the nominal interest rate that Aerotron is paying on the loan, we need to determine the amount of interest paid each period and divide it by the principal loan amount. From the given information, we know that the first payment is made in the 13th month, which means there are 12 payments in a year. Let's assume the loan amount is $L and the interest rate is i.
a. To calculate the nominal interest rate, we can use the formula:
i = (Payment - Principal) / Principal
Since the principal amount is not given, we cannot calculate the exact nominal interest rate without additional information.
b. The effective interest rate takes into account the compounding effect. If compounding occurs yearly, the effective interest rate is equal to the nominal interest rate. However, if compounding occurs more frequently (e.g. monthly or quarterly), the effective interest rate will be higher than the nominal interest rate due to the compounding effect.