Should I invest borrowed money in a CD?

I have the chance to take out an un-secured 25k loan at 2% interest (it's a military thing). Should I take it out and invest it in a CD making 5% interest? Is it as really as simple as "Well, 5-2=3, so I should walk with $750?"

Go for it!

With 2% interest, I would rather put it in the stock market but a CD is perfectly fine.

Well that depends if you have the extra money to pay the interest upfront, you can be taking out the 5% everytime to pay the 2% then your money is not growing at the rate you want.

Do remember that sometime loan interest rate do change. so do keep a look out to see if it gives you a better return

Here are some
questions for you.
1) Do you have to make payments back monthly?
2) Will you be able to afford making these payments without using the borrowed money?
3) How long can you borrow the money for?
4) Is this 2% fixed for the life of the loan?

Depending on how you answer these questions will determine if you should borrow the money at all and into what investment vehicle you should put it into.

Please read my profile and send me an email with the answers to my questions.

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