The salary of Mr. Cruz is increased by 30% every 2 years beginning January 1, 1982. Counting from that date, at what year will his salary just exceed twice his original salary? 2. How long will it take for an investment to double its amount if invested at an interest rate of 6% compounded bi-monthly? 3. A sum of P 1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest that has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

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A: given information  present value = $1000 time period = 10 years interest rate = 7.3% annum

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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.