You have decided to buy a car that costs $34,100. The dealer offers you a 5-year loan with monthly payments of $695 per month. What is the annual nominal interest rate on the loan?

To calculate the annual nominal interest rate on the loan, you need to know the total interest paid over the course of the loan and the total amount borrowed.

First, let's calculate the total amount paid over the 5-year loan term:
Total payments = Monthly payment * Number of months
Total payments = $695 * 12 months/year * 5 years
Total payments = $41,700

To find the total interest paid, we subtract the total amount borrowed (the cost of the car) from the total payments:
Total interest = Total payments - Total amount borrowed
Total interest = $41,700 - $34,100
Total interest = $7,600

Now, let's calculate the annual nominal interest rate:
Annual interest rate = Total interest / Total amount borrowed
Annual interest rate = $7,600 / $34,100
Annual interest rate ≈ 0.2228

To express this as a percentage, multiply it by 100:
Annual interest rate ≈ 0.2228 * 100
Annual interest rate ≈ 22.28%

Therefore, the annual nominal interest rate on the loan is approximately 22.28%.