dealership offers financing at 4.9% annual interest, compounded monthly for 5 years. You have $4000 for a down payment and you will finance the rest. i) What is the total cost of the car, including HST only. ii) Calculate your monthly payment. Be sure to show what values you use for the TVM solver.

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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.