A student looking at the timeline for a student loan on page 60 of the text makes the following​ observation: The text states that the interest rate on the loan is​ 9%, but this calculation is obviously wrong. Each monthly payment is ​, so the student will be paying back per year.​ Therefore, because the principal of the loan is ​, the interest rate must be . The above student statement​ is: A. incorrect because part of each payment is to principal and to interest.​ Therefore, only a portion of the payment goes to​ interest, so the full amount should not be included when computing the rate of interest paid. B. incorrect because the stated rate on the loan is​ 9% which means that even though the loan is made with monthly​ payments, the borrower is still effectively only charged​ 9% a year. C. correct because even though the stated interest rate is​ 9%, payments are made monthly which means it is compounded more times so the effective rate should work out to​ 15.24% D. correct because as the student​ states, there is a payment of per year that works out to​ 15.24%.