nding Lenny Loanshark charges 1 percent per week on his loans. Assume that there are exactly 52 weeks in a year. Assume that you borrow $1,000 from Lenny. (a) How much will you owe Lenny after one week? (b) How much will you owe Lenny after three weeks? (c) What APR is Lenny charging

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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.