A man needed money for college. He borrowed $6,000 at 12% simple interest per year. If he paid $360 interest, what was the duration of the loan? The duration of the loan is year. (Round to two decimal places as needed.) RTTI

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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.