19 00:48:34 You take out $10,000 loan for seven years at an annual interest rate of 5% and with fixed annual loan payments of $1,728.20. The percent of the first fixed payment that is applied to principal would be...... Multiple Choice O O 71% 86% 29% 38%

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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.