you have just taken out a 5 year laon frm a bank to buy an engagement ring.  The ring costs $5000.  You plan to put down $1000 and borrow $4000.  you will need to make annual payments of $1000 at the end of each year.  show the timeline of the loan from your perspective.  How would the timeline differ if you created it from the bank's perspective?

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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.