Galvin is graduating from college in eighteen months, but he will need a loan in the amount of $9,875 for his last three 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?

Question

anonymous · Answer

plus loan,about half of 9,875

anonymous · Answer

options are either 227.06 dollars higher or 604.07 dollars higher for plus loan?

anonymous · Answer

604. 07 with interest.might be wrong, havent done this in a long time.

anonymous · Answer

thats fine ill take that answer(: Thanks !!(:

anonymous · Answer

your welcome.