The amount of interest included in Shelly Sanders's first payment is E. $11.67.
How to find the amount of interest included in Shelly's first payment?
First, we shall calculate the total amount paid:
Total amount paid = Monthly payment X number of payments:
Total amount = $345/month * 12 months = $4140
Next, we find the total interest paid:
Total interest paid = Total amount paid - Loan amount
$4140 - $4000 = $140.
Estimate the monthly interest rate:
Total interest / (the product of the loan amount and the number of payments)
Monthly interest rate = $140 / ($4000 * 12)
= 0.00291667.
Then, we find the interest included in the first payment:
Multiply the loan amount by the monthly interest rate: $4000 * 0.00291667 = $11.6667
Interest included in the first payment = $11.67.
Thus, the amount of interest included in Shelly's first payment is $11.67.