Lee purchased a laptop and promised to pay P2500 every month for 2 years, beginning on the date of purchase. The seller figured interest at 3% compounded monthly. After making 8 payments, Lee wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due, how much must he pay to the regular payment then due? Show complete solution and formula used. Write it on a piece of paper, don't type it.

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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.