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?