Julian Is a Student Relying on Student Loans

Multiple Choice

Julian is a student relying on student loans.He feels he would like to borrow an extra $4000 each year for the next four years to take vacations to recover from studying.Assume that no interest accrues until he completes his education and begins paying off the loan.The interest rate for the loan amount will be seven percent per year compounded monthly and he will pay it off over five years.What would his monthly payment be on this loan?

A) $374
B) $267
C) $271
D) $317