Suppose you want to save in order to purchase a new car. Take the APR to be 3.6%. If you deposit $250 each month, how much will you have towards the purchase of a car after 2 years?

Q: Average real return

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Q: its telling me that this is wrong? can you help further?

A: Information Provided: Shares purchased = 200 Margin = $100/share Margin % = 40%

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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.