Fixed Interest Rate Loan and Increase in inflation?

Suppose that Brian takes out a private loan of ,000 from a bank to help pay for a new sports car. The inflation rate has been constant at 3% for the past decade, so the bank offers Brian a five-year loan at a fixed annual nominal interest rate of 10%. That is, the nominal interest rate is set at 10% per year for five years no matter what the level of inflation rate is.
Suppose that right after Brian and the bank agree on the loan there is an oil shock, and the inflation rate increases to 8% for five years. Who benefits from this unexpected rise in the inflation rate?

Who benefits? 1. The Bank 2. Neither 3. Brian

Thanks for your help

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Tags: decade, inflation rate, new sports, nominal interest rate, oil shock, private loan, rate increases, sports car, thanks for your help, unexpected rise

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