You have a $7,000 balance on your car loan at 11% interest. Your favorite aunt has just left you $10,000 in her will. You decided to pay off the car loan and invest the difference. Now you no longer have a $350 per month car payment.

Suggest some ways you might use these additional funds. It would be wise to:

It would be wise  to invest in an Annuity with monthly payment of $350.

Explanation:

You no longer have a $350 per month car payment; and you used to live well without this $350. So it's the best to use this $350 for an invesment.

Annuity is a financial reserved for retirement. Assuming you will be retired in 10 years. Then you invest in an annuity now with:

current rate: 6% ~ monthly rate 0.5%,

Monthly payment of $350 (PMT)

Tenor: 10 years (NPer = 120)

you will have a future value in 10 years as below:

In excel, FV(rate,Nper,PMT) = FV(0.5%,120.350) = $57,538

Then when you're retired, you invest full $57,538 in an retirement annuity to receive a monthly amount for living expenses. Assuming the key factors as below:

Monthly rate: 0.5%

Tenor: 25 years ~ 300 months

PV: $57,538

The monthly amount to be received is PMT(rate,Nper,PV)= PMT(0.5%.300,$57,538) = $370

You will receive about $370 for 25 years in every month of 25 years in retirement.

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!