Claudius took out an unsubsidized Stafford loan at the beginning of his six-year college career. The loan had a principal of $4,850, an interest rate of 6.5% compounded monthly, and a duration of ten years. If Claudius started paying off the loan when he graduated, what is his monthly payment? Round all dollar values to the nearest cent.

Because the loan is unsubsidized, interest accrues while Claudius is in college. After 6 years, its balance is about $4,850 × (1 + 0.065/12)^72 = $7,156. He repays that balance over 10 years, or 120 monthly payments, at 0.065/12 per month: the payment is about $81.25. Therefore, the correct choice is $81.25.

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