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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?

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  1. AGummiBear55
    • 3 years ago
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    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
    • 3 years ago
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    Stafford: $ 5,673.71 PLUS: $ 5,539.36 -> ....

  3. AGummiBear55
    • 3 years ago
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    so it's A!!!! YAYAYAY!!

  4. AGummiBear55
    • 3 years ago
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    Thank you so so much!! :) I've been stuck on those questions forrrevverrr until you came along.

  5. AGummiBear55
    • 3 years ago
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    Thanks. I have to go; dinner's been ready for an hour already and I'm starving... lol. Thanks again.. :)

  6. Chlorophyll
    • 3 years ago
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    You need the scientific calculator to store all the results, the round off won't lead to exact hundredth digit !

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