Let's imagine Sandra has a student loan of $17,000 with an interest rate of 5.6%.
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Calculate an estimate of how much her monthly payments would be if she is charged an interest rate of 5.6% and she takes the full 11 years to repay the loan. Round your answer to the nearest dollar.

To calculate Sandra's estimated monthly payments, we can use the formula for the monthly payment of a loan, which is given by:

\[
M = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- $M$ is the monthly payment
- $P$ is the loan amount (principal)
- $r$ is the monthly interest rate (annual interest rate divided by 12)
- $n$ is the number of monthly payments (loan term in years multiplied by 12)

Let's plug in the numbers:

- $P = 17,000$ (the principal)
- Annual interest rate = 5.6% = 0.056
- Monthly interest rate $r = \frac{0.056}{12} = 0.0046667$
- Loan term $n = 11 \times 12 = 132$ months

Now, we can calculate Sandra's monthly payment $M$.Sandra's estimated monthly payment would be **$173** if she repays the loan over 11 years at an interest rate of 5.6%, rounded to the nearest dollar.

Do you want more details on the calculation, or do you have any other questions?

Here are some related questions:
1. How would the monthly payment change if the interest rate increased to 6.5%?
2. What is the total amount Sandra will pay over the 11 years?
3. How much of the total payment will be interest?
4. What would be the monthly payment if Sandra decided to repay the loan in 8 years instead?
5. How does the loan term affect the monthly payment?

**Tip:** Understanding how the interest rate and loan term affect your monthly payments can help you make informed financial decisions.

Learn how to calculate monthly loan payments with an interest rate of 5.6%. Use our formula to estimate monthly payments for a loan of $17,000 over 11 years, rounded to the nearest dollar.

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