A student is graduating from college in 12 months but will need a loan in the amount of [tex]$11,985 for the last two semesters. The stu\ \textless \ br/\ \textgreater \ a PLUS Loan. The terms of each loan are:\ \textless \ br/\ \textgreater \ Unsubsidized Stafford Loan: annual interest rate of 3.85%, compounded monthly, and a grace period of six months from time of gr\ \textless \ br/\ \textgreater \ PLUS loan: annual interest rate of 4.15%, compounded monthly, with a balance of $[/tex]12,491.95 at the time of repayment
Which loan will have a higher balance, and by how much at the time of repayment?
The PLUS loan will have a higher balance by [tex]$37.30 at the time of repayment.\ \textless \ br/\ \textgreater \ O The Stafford loan will have a higher balance by $[/tex]37.30 at the time of repayment.
O The PLUS loan will have a higher balance by [tex]$204.39 at the time of repayment.\ \textless \ br/\ \textgreater \ O The Stafford loan will have a higher balance by $[/tex]204.39 at the time of repayment.