A debt of ​$19,000 is being repaid by 15 equal semiannual​ payments, with the first payment to be made six months from now. Interest is at the rate of 5​% compounded semiannually.​ However, after two​ years, the interest rate increases to 6​% compounded semiannually. If the debt must be paid off on the original date agreed​ upon, find the new semiannual payment

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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.