Develop a general-purpose spreadsheet to calculate the balance due, principal payment, and interest payment for each period of a loan. The user inputs to the spreadsheet will be the loan amount, the number of payments per year, the number of years payments are made, and the nominal interest rate. Submit printouts of your analysis of a loan in the amount of $15,000 at 8.9% nominal rate for 36 months and for 60 months of payments

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Q: loan

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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.