a wants to give her daughter Mara a financial gift on the latter's college graduation two years now. Aurora came across a promotional high-yielding savings account which guaranteed tha posit of P2,000 today becomes P5,000 during the same period. What is the interest rate in ase if it is compounded quarterly?

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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.