Sarah borrows some money to buy a new car. The car dealership allows her to defer payments for 12 month. and Sarah makes 60 end-of month payments thereafter. If the original loan is $29140 and interest is 0.75% p month, how much will Sarah's monthly payment be? 4 O $1326 O $796 O $530 $663 $1193

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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.