Jim makes a simple interest loan of $5,800 at 16.35% for 18 months.  Assume the loan period is determined using ordinary time.  Find the interest paid. Find the maturity value.

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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.