Find the compound amount and compound interest in Php62,000 at the end of 3 years at 8% compounded quarterly. Accumulate Php35,000 at 9% compounded bi-monthly for 3 years. Find the compound amount and compound interest. On October 1, 2012, Allan borrowed Php20,000 at 8% compounded quarterly. How much will he pay if he will settle his loan on April 1, 2015? Frederick invested Php80,000 for 8 years and 9 months at 12% compounded annually. Find the amount due on maturity date using the direct substitution method and the practical method.

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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.