The answer should be 12.1%, please explain

4. A loan of $150,000 borrowed at the interest rate of 11% is to be repaid by level annual payments at the end of each year for 25 years. This loan requires the borrower to pay an initial fee in the amount of 3% of the loan, subtracted from the amount borrowed up front. There is no prepayment fee. The borrow pays off the loan at the end of the second year. Find the rate of return to the lender. 4. A loan of $150,000 borrowed at the interest rate of 11% is to be repaid by level annual payments at the end of each year for 25 years. This loan requires the borrower to pay an initial fee in the amount of 3% of the loan, subtracted from the amount borrowed up front. There is no prepayment fee. The borrow pays off the loan at the end of the second year. Find the rate of return to the lender