Wade Ellis buys a car for $16,278.13. He puts 10% down and obtains a simple interest amortized loan for the balance at  11 1 2%  interest for four years. After three years and two months of making the minimum monthly payment, he sells his car. Find the unpaid balance on his loan. (Round your answer to the nearest cent.)

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A: a)  Computation:

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A:

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Q: simple interest amortized loan for the rest at 6 3/8 % interest for thirty years.

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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.