Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the interest rate was 8% p.a. compounded monthly. To fully repay the loan in 30 years, Leo will make equ monthly repayments including the principal and the interest starting one month after the borrowing date. The bank increased the interest rate to 11% p.a. compounded monthly today. Calculate the amount in maximum Leo can borrow now. Assume there is no change in the monthly repayments and the loan term. ( answer in excel )

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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.