Maryanne purchases a house for $380,000 and takes a mortage for the full amount. Her mortgage charges 3% per year and interest is compounded monthly. She will repay the loan over 30 years with equal monthly payments. a) What is her monthly payment amount? b) How much of the 6th payment would be applied toward interest? c) How much of the 6th payment would be applied toward principal? Please show work or excel formuals used

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A: ANSWER GIVEN ON THE NEXT SHEET

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A: Excel Spreadsheet: Excel Workings:

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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.