Suppose the interest rate is 10.2 % APR with monthly compounding. What is the present value of an annuity that pays $ 119 every 6 months for 6 ​years? Question content area bottom Part 1 The 6 ​-month effective interest rate is 5.209 ​%. ​(Round to three decimal​ places.) Part 2 The present value is ​$enter your response here . ​(Round to the nearest​ ce

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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.