Your cousin's student loan totaled $45,000 when he graduated. After making payments for the last 2.5 years (30 payments) in the amount of $595 per month, how much does your cousin still owe if the interest rate on student loans has been 6.29% per year?

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A:

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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.