You took out a student loan in college and now have to pay $1,200 every year for 10 years, starting one year from now. The annual interest rate on the loan is 4%. Part 1 What is the your student loan balance as of now? p+ decimals

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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.