The Stafford Loans are govt federal loans, which implies you're borrowing money from us Department of Education directly. It has a low guaranteed return, so your payments won't go up if interest rates go up, and the following computation can be used:
Calculating the first Loan:
[tex]\to \bold{\$4,850 \times (1+\frac{0.068}{12})^{12}}\\\\\to \bold{\$4,850 \times (1+0.005)^{12}}\\\\\to \bold{\$4,850 \times (1.005)^{12}}\\\\\to \bold{\$4,850 \times 1.061}\\\\\to \bold{\$5,145.85}\\\\[/tex]
Calculating the second Loan:
[tex]\to \bold{\$4,850 \times (1+\frac{0.078}{12})^{12}}\\\\\to \bold{\$4,850 \times (1+0.0065)^{12}}\\\\\to \bold{\$4,850 \times (1.0065)^{12}}\\\\\to \bold{\$4,850 \times 1.080}\\\\\to \bold{\$5238}\\\\[/tex]
Calculating the difference:
[tex]\to \bold{5238-5145}\\\\\to \bold{93}[/tex]
Therefore, the second loan has a higher balance that is "93".
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