When my father passed away I inherited a back account containing $18,000 earning 4% effective annual interest. I plan to withdraw the interest plus $3,000 at the end of each year for the next 6 years. If I put both in a second account earning 7% effective annual interest. What is the accumulated value of the second account after 6 years

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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.