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Mathematics, 07.11.2020 21:30 McSporter
Elliot is graduating from college in six months, but he will need a loan in the amount of $4,850
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 and by how much at the time of
repayment?
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Answers: 2
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Elliot is graduating from college in six months, but he will need a loan in the amount of $4,850
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