Almirah wants to have P50,000 at the end of 4 years for her graduation expenses and blow-out party.  She plans to deposit a certain amount, at the end of each month to achieve this goal.  If her deposit pays 8% compounded monthly, what should be her monthly deposit?

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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.