You have an outstanding student loan with required payments of $550 per month for the next four years. The interest rate on the loan is 9% APR you are considering making extra payments of $100 today (that is, you will pay an extra $100 that you are not required to pay)
A. If you are required to continue making payments of $550 per month until the loan is paid off, what is the amount of your final payment?
B. What effective rate of return ( expressed as an APR with monthly compounding) have you earned on the $100?
