Greg is graduating from college in 12 months but will need a loan in the amount of $11,985 for the last two semesters. Greg may receive either an unsubsidized Stafford Loan or a PLUS Loan. The terms of each loan are:

Unsubsidized Stafford Loan: annual interest rate of 3️⃣.8️⃣5️⃣%, compounded monthly, and a grace period of six months from time of graduation

PLUS loan: annual interest rate of 4.15%, compounded monthly, with a balance of $12,491.95 at the time of repayment

Which loan will have a higher balance, and by how much at the time of repayment?

The PLUS loan will have a higher balance by $3️⃣7️⃣.3️⃣0️⃣ at the time of repayment.
The Stafford loan will have a higher balance by $3️⃣7️⃣.3️⃣0️⃣ at the time of repayment.
The PLUS loan will have a higher balance by $2️⃣0️⃣4️⃣.3️⃣9️⃣ at the time of repayment.
The Stafford loan will have a higher balance by $2️⃣0️⃣4️⃣.3️⃣9️⃣ at the time of repayment.

Edited for extra safety + fake answers reported