Taylor took out a student loan for $6,000 and agreed to pay it off with monthly payments over 11 years at a 5% interest rate compounded monthly. This made her monthly payments $59. How much will Taylor end up paying in interest?

To calculate how much Taylor will pay in interest, we can use the following steps:

1. **Find the total amount paid over the loan term** by multiplying the monthly payment by the number of months.
2. **Subtract the original loan amount** from the total amount paid to determine the interest paid.

### Step 1: Calculate the total number of payments

Taylor is making monthly payments over 11 years, so:

\[
\text{Total number of payments} = 11 \times 12 = 132 \text{ months}
\]

### Step 2: Calculate the total amount paid

Taylor's monthly payment is $59, and she makes 132 payments:

\[
\text{Total amount paid} = 59 \times 132 = 7,788
\]

### Step 3: Calculate the interest paid

The total interest paid is the difference between the total amount paid and the original loan amount:

\[
\text{Interest paid} = 7,788 - 6,000 = 1,788
\]

So, Taylor will end up paying **$1,788** in interest over the course of the loan.

Would you like more details or have any questions?

Here are 5 related questions:
1. What would happen if the interest rate were higher?
2. How would shortening the loan term affect monthly payments?
3. How can Taylor reduce the total interest paid on the loan?
4. What if she made extra payments—how much could she save in interest?
5. How would switching to a bi-weekly payment schedule impact the total interest?

**Tip:** Paying a little extra each month can significantly reduce the overall interest paid on a loan.

Learn how to calculate the interest paid on a $6,000 student loan with monthly payments of $59 over 11 years at a 5% interest rate compounded monthly. Understand loan amortization and compound interest in this practical example, suitable for Grades 10-12.

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