A person decides to pay at the beginning of each semester for 6 years the sum of $3315. Calculate the interest rate compounded semi-annually that will have to be credited on these payments so that she can accumulate the sum of $51,803. a. 4.6816% b. (9,3632%, 2) c. (8%, 2) d. 8% What would be answer ?

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Q: Ques 15 and 16

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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.