Keith bought a lakeside cottage for 30% down and monthly mortgage payments of $1224.51 at the beginning of each month for 20 years. Interest is 4.4% compounded monthly. What is the purchase price of the property?   Question 13 options:   A)  $195 930   B)  $194 378   C)  $195 214   D)  $279 900   E)  $278 878

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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.