When Melissa had 2 years left in college, she took out a student loan
for $12,295. The loan has an annual interest rate of 5.7%. Melissa graduated 2 years after acquiring the loan and began repaying the loan immediately upon graduation.
According to the terms of the loan, Melissa will make monthly payments for 5 years after graduation. During the 2 years she was in school and not making payments, the loan accrued simple interest.
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