You have bought a car. The car dealer offers two payment plans: (A) Make 48 monthly payments of $130 each, or (B) Make 36 payments of $165 each. If the timevalue of money is 12% peryear, which plan is cheaper for you?

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A: Standard Deviation: It represents a measure of statistics that estimates the dispersion of a set of…

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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.