Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a)find the value of her investment after 20 years, assuming    she    started   with a zero balance. b)find the initial balance would she have had to start with if she makes no monthly payment, but the account has the same amount of money as the answer to part(a).

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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.