You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate on the loan is 8% APR. You are considering making an extra payment of $ 200 today(that is, you will pay an extra $200 that you are not required topay).

a. If you are required to continue to make payments of $ 500per month until the loan is paidoff, what is the amount of your finalpayment?

b. What effective rate of return(expressed as an APR with monthlycompounding) have you earned on the $ 200?