You've just bought a new flat - screen TV for and the store you bought it from offers to let you finance the entire purchase at an annual rate of 16 percent compounded monthly . If you take the financing and make monthly payments of $ 100 how long will it take to pay off the loan ? How will you pay in interest over the life of the loan ? \$3.400

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A: Given:

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Q: Ques 9 and 10

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Q: you want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…

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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.