A landlord needs to update a rental house due to it's age, so it can be habitable again. If he h to cover a $1,100.00 payment monthly for 2 years at 3% compounded monthly, how much can and still be able to afford the payment? (Round to 2 decimal places.) He can borrow $

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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.