It is January 1, 2021 and you work for a company that deposits $7,000 on December 31st every year into a retirement plan. The first payment was yesterday. You will earn 6% in an annuity compounded annually, and there are no taxes due on the income in the account as long as you don't withdraw it. Assume you work at this company for your whole career, and you expect to retire soon after the end of 2040. How much will be in this account at close of business on December 31, 2040?

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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.