A student loan program allows college students to borrow money at 7 percent annual interest
compounded monthly. Students do not need to start paying off the loan until they graduate, but the loan
continues to accumulate interest owed during that time. If a student borrows $35,000, how much interest has
accumulated by the time the student graduates four years later?

$46,271.89

Step-by-step explanation:

First, we calculate the effective annual rate(given the annual rate compounded monthly is 7%):

We can now determine the future value of a $35,000 loan at an effective rate of 7.229008% p.a:

Hence, the student has accumulated $46,271.89 at the end of 4 years.

c - they will have the same distribution

step-by-step explanation:

this is the only one that could make sense. : )