Cole needs $200 to buy textbooks. He has two choices. His first choice is to borrow from his college which offers short-term loans with 12% Annual Percent Rate compounded monthly. His second choice is to borrow the money from his friend, John, who will charge him $3 each month until Cole pays the loan back. Cole wants to create equations for the amount of money that he would owe to his school and to his friend to help him with making his final decision.

Which of the following statements is true?

Group of answer choices

Both the amount owed to his friend, John, and the amount owed to the college are exponential models.

The amount owed to the college is an exponential model, but the amount owed to his friend, John, is not exponential.

Neither the amount owed to the college nor the amount owed to his friend, John, is an exponential model.

The amount owed to his friend, John, is an exponential model, but the amount owed to the college is not exponential.