During Four Years of College, Nolan MacGregor's Student Loans Are

Multiple Choice

During four years of college, Nolan MacGregor's student loans are $3,700, $4,700, $4,400, and $4,100 for freshman year through senior year, respectively. Each loan amount gathers interest of annual rate 1%, compounded quarterly while Nolan is in school; and an annual rate of 3%, compounded quarterly during a 6-month grace period after graduation. Assume the freshman year loan earns an annual rate of 1% interest for year during the first year, then for 3 full years until graduation. Make similar assumptions for the loans for the other years. After the grace period, the loan is amortized over the next 10 years at an annual rate of 3%, compounded quarterly. Find the quarterly payment. Round your answer to the nearest cent. ​

A) $293.17
B) $461.36
C) $169.74
D) $1,384.07
E) $509.21