aria secure a loan of $12,000 3 years ago from a bank for used toward her college expenses. The bank charged interest at the rate of 4% per year compounded monthly on her loan. Now that she has graduated from college, Maria wishes to repay the loan by amortizing it through monthly payments over 10 years at the same interest rate. Find the size of the monthly payments that she will be required to make. 

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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.