QUESTION11
a. The required return is 4.1% APY (EAR). Suppose you borrow $27574 for college expenses today. What will be your payments per month if you will repay the loan over a period of 63 months, with your first payment being made 30 months from today? (Rounded to the nearest cent.)
b. The required return is 9.9% APY (EAR). How much would you need to save per month for the next 46 years so that you will have $0.925 million saved to retire on, 46 years from now, assuming your first payment is made one month from today? (Rounded to the nearest 10 cents.)
