mach year in an investment that pays 4%/a, compounded annually, until her 50 birthday. She ther caves the money in the investment to collect interest at 5%/a compounded semiannually until her birthday. a) Determine how much money she will have on her 65th birthday. b) Penny's best friend, Susan, decides to wait until her 45th birthday to start planning for her- future. Susan can get the same rate of return (4%/a compounded annually) on her investm Find the yearly payment that she would be required to make until 65th birthday so that her investment is equivalent to Penny's investment.

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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.