What Is The Total Amount Of Interest Shelby Will Pay For The Car Loan?

 To determine the total amount of interest Shelby will pay for the car loan, we need to know the principal amount of the loan, the interest rate, and the loan term. Without this information, I can't provide an exact calculation. However, I can guide you through the process of calculating it yourself.

Here's the formula to calculate the total amount of interest paid on a loan:

$\text{Total Interest}=\text{Principal}\times \text{Interest Rate}\times \text{Loan Term}$

Where:

• Principal is the initial amount of the loan.
• Interest Rate is the annual interest rate (expressed as a decimal).
• Loan Term is the length of time the loan is scheduled to be repaid (in years).

Let's say Shelby takes out a car loan for $20,000 with an annual interest rate of 5% and a loan term of 5 years. We can plug these values into the formula:

$\text{Total Interest}=\mathrm{\$}20,000\times 0.05\times 5$

$\text{Total Interest}=\mathrm{\$}20,000\times 0.25$

$\text{Total Interest}=\mathrm{\$}5,000$

So, in this example, Shelby would pay a total of $5,000 in interest over the life of the loan.