What will your monthly payment be if you have a 5% interest rate and a term of 20 years? How much will you pay for your college education? How much of that is interest? If the yearly payment is $17000

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A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…

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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.