## AGummiBear55 3 years ago Gilbert is graduating from college in one year, but he will need a loan in the amount of \$5,125 for his last two semesters. He may either receive an unsubsidized Stafford Loan with an interest rate of 6.8%, compounded monthly, or his parents may get a PLUS Loan with an interest rate of 7.8%, compounded monthly. The Stafford Loan has a grace period of six months from the time of graduation. Which loan will have a higher balance at the time of repayment and by how much?

1. AGummiBear55

The Stafford Loan has a higher balance by \$134.35. The Stafford Loan has a higher balance by \$274.36. The PLUS Loan has a higher balance by \$54.79. The PLUS Loan has a higher balance by \$85.22.

2. Chlorophyll

Stafford: \$ 5,673.71 PLUS: \$ 5,539.36 -> ....

3. AGummiBear55

so it's A!!!! YAYAYAY!!

4. AGummiBear55

Thank you so so much!! :) I've been stuck on those questions forrrevverrr until you came along.

5. AGummiBear55

Thanks. I have to go; dinner's been ready for an hour already and I'm starving... lol. Thanks again.. :)

6. Chlorophyll

You need the scientific calculator to store all the results, the round off won't lead to exact hundredth digit !