Part 1 a. Calculate P1+r12n and call this number A.   A=enter your response here ​(Round to two decimal places as​ needed.) Part 2 b. Calculate 1+r12n−1r12 and call this number B.   B=enter your response here ​(Round to two decimal places as​ needed.) Part 3 c. Let R​ = AB.   The monthly payment necessary to pay off the loan is R=​$enter your response here. ​(Round up to the nearest​ cent.)

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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.