William recently bought an old Mazda CX5 for $14,888 and financed it at 8% compounded semi-annually. If he wants to pay off the debt in three years by making payments at the end of each month. How much will he need to pay each month? Select one: a. $367.28 b. $466.54 C. $368.00 d. $465.64

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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.