If Megan has $35,000 in student loans and wants to pay them by extending her loan out to 20 yrs (interest of 5.5% and starting at the end of the month), how much will she have paid in total towards her loan?       $91,167.07     $28,891.27     $52,980.45     $57,782.53

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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.