Sally lends $10000$ to Tim. Tim agrees to pay back the loan over $5$ years with monthly payments at the end of each month. Sally can reinvest the the monthly payments from Tim in a savings account paying interest at $6$% compounded monthly. The yield rate earned on Sally's investment over the five-year period turned out to be $7.45$%,compounded semi-annually. What nominal rate of interest, compounded monthly, did Sally charge Tim on the loan?
To find the interest Tim pays to Sally
It is this loan amount that is reinvested, so
Then I start to have problems to solve this.