A $2,200 loan at 6.7% was repaid by two equal payments made 30 days and 60 days after the date of the loan. Determine the amount of each payment. Use the loan date as the focal date.

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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.