Claire wants to have $20,000 in 10 years. She opens a savings account in abank which pays 6% compounded monthly. She can either deposit a single lump sum or schedule monthly deposits. 1. Find the the amount of the lump sum. 2. Find the amount of each monthly deposit. 3. Which option earns Claire more interest? Explain. 018 10 A hart are 1 ular

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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.