#1 Shae likes to work on cars and signs a simple interest note with a maturity value of $ 62000 at 7.7​% for 275 days to open an auto repair shop. Find the principal and the interest.​ (Assume a​ 360-day year.) ANSWER

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.