Heather took out a loan for 7 months and was charged simple interest at an annual rate of 7.2%. The total interest she paid on the loan was $231. How much money did Heather borrow? Do not round any intermediate computations. If necessary, refer to the list of financial formulas. $] X 5 ?

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A: Given,  Monthly Payment = $1300 Year = 30 years Amount Financed = $180000

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A: Interest rate = 6%Number of periods = 8 monthsInterest received = $272.00

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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.