How much would a periodic deposit of $40 every month grow to after 50 years at 3% annual interest rate? Compare your answer to the mattress method of saving 40 dollars a month for 50 years.

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A:

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A: Home cost = $425,000Period = 30 yearsInterest rate = 5.74%Down payment = 30%

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A: Compound = Quarterly = 4Number of Payment = n = 3 * 4 = 12Interest rate = i = 14 / 4 = 3.5%Payment =…

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Q: How much would a periodic deposit of $40 every month grow to after 50 years at 3% annual interest…

A: The calculation is shown as: The formula sheet is represented below:

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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.