To calculate an estimate of Sandra's monthly payments for her student loan of $23,000 with an interest rate of 4.9% over a repayment period of 9 years, we can use the formula for calculating the monthly payment on a loan:
M = (P * r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
- M is the monthly payment
- P is the principal loan amount ($23,000)
- r is the monthly interest rate (4.9% divided by 12 months and converted to a decimal)
- n is the total number of monthly payments (9 years multiplied by 12 months)
Plugging in these values into the formula:
P = $23,000
r = 4.9% / 12 = 0.049 / 12 ≈ 0.00408
n = 9 years * 12 months = 108
M = ($23,000 * 0.00408 * (1 + 0.00408)^108) / ((1 + 0.00408)^108 - 1)
Using a calculator or a spreadsheet, we can evaluate this expression:
M ≈ $283.67
Therefore, an estimate of Sandra's monthly payments for her student loan, with an interest rate of 4.9% and a repayment period of 9 years, would be approximately $283.67 when rounded to the nearest dollar.