Gad is graduating from college in six months, but he will need a loan in the amount of $8,375 for his last semester. 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?

Question

anonymous · Answer

Can someone help with this please

anonymous · Answer

the answer choices are these 
The PLUS Loan has a higher balance by $89.53.

The PLUS Loan has a higher balance by $448.35.

The Stafford Loan has a higher balance by $564.69.

The Stafford Loan has a higher balance by $255.61.