You have a student loan of 40,0005s that you want to repay in 10 years interest rates are at year for every maturity. per Assuming annual payments with annual compounding, how much should you pay each year? 040115 55555 Od 52265 6,5105 Of 4,0005 og 24025 Oh. 5,8625

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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.