You decide to buy a car for $15,000.00 and decide to make payments of $1,100 each month. If the loan is 3% compounded monthly, how many full months of payments will it take to pay off the $15,000.00? What is the amount of the smaller concluding payment one month later? It will take    months of full payments. The smaller concluding payment is $   . (Round to 2 decimal places.) Submit QuestionQuestion 7

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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.