What is the rate of return on investment

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1. You expect to graduate with $32400 in student loans. The interest rate on your loan is 5.4 percent compounded monthly and the loan calls for fixed monthly payments. If you repay the loan in 27 years how much are you paying in total interest over the life of the loan? (HINT: you need to calculate the monthly payment first).

2. Maybepay Life Insurance Co. is selling a perpetual contract that pays $4600/year. The contract currently sells for $112000. What is the rate of return on this investment? Enter answer as 4 decimals (e.g. 0.1234).

Reference no: EM131985454

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