Find the interest paid on a 30-year loan of $350,000 at an annual interest rate of 6% compounded monthly. Assume that you made monthly payments for the full 30 years.

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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.