You invest​ $1500 today and another​ $2000 18-months from today in a fund earning j4 = 8% for the first 18 months followed by j2 = 6% thereafter. How much do you have at the end of 4​ years? A. $4274.59 B. ​$4276.84 C. ​$4007.79 D. $4377.73

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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.