Early retirement. Lauren Johnson signs a 10-yr contract as a loan officer for a bank, at a salary of $84,000 per year. After 7 yr, the bank offers her early retirement. What is the least amount the bank should offer Lauren, given that the going interest rate is 7.4%, compounded continuously?

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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.