ou have decided to buy a car. The car cost RM 50 Q00e You are taking a loan from a ban vith the interest rate is 3%. The number of years to pay back the loan is 5 years. And ecided to pay 10% down payment for the car you a B) Using the interest charge based on original balance, calculate i. the total interest charged ii. the instalment price | ji the monthly navment

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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.