Today, Tiffany is starting to save up for a downpayment on a house. Currently she has $635 in an account earning 8% semiannually. She will deposit $138 at the beginning of every two weeks for four years. After an additional six months (4.5 years from today), Tiffany pays the downpayment of $15,000 for her new home. What balance is remaining in this account?

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A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

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A: Using Excel

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Q: How much does Jeanette need in her account when she retires?

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A:

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.