A father decides to invest k300 each month at 12% per year compounded monthly to pay for his 12 year old son's tertiary education when the son reaches 17 years a. if deposits are done at the end of each month, what amount of money will be available at the time the son enters tertiary education? b. if deposits are done at the start of each month, what amount of money will be available at the time the son enters tertiary education?

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A:

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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.