A deposit of $6700 is made to open an account on May 22, 1998. quartely deposits of $970 are then made for 8 years, the first deposit on May 22, 1999. Starting on November 22, 2003, the first of a sequence of $580 quarter withdrawals is made. Assuming interest at 13.73 % compounded seminualy, find the balance in the account on August 22,2000

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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.