One year ago, you purchased a new SUV. You financed your SUV with a loan consisting of 60 monthly repayments, each occurring at the end of the month. The first re-payment (after one month) equaled £325, but the monthly re-payments grow at a constant rate of 0.25%. The effective monthly interest rate is 0.5%. What is the value of the loan after one year has passed? 1.13463.23 02.15094.87 3.13955.34 04.12423.23

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A: Here,

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A:

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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.