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You purchase a dishwasher for 1261 .60 plus 7% sales tax. The appliance store offers an loan that allows you to pay for the dishwasher by making 12 equal monthly payments of $123.74 What is the cost of credit, in , for this loan? Round your answer to the nearest cent.

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anthougo

The cost of credit for this loan is $134.97.

What is the cost of credit?

The cost of credit represents the difference between the total payments made and the original mortgage value.

It is also called the finance charge.

Data and Calculations:

Purchase price = $1,261.60

Sales tax = 7% or $88.31 ($1,261.60)

Monthly instalment = $123.74

Payment period = 12 months

Total payment for 12 months = $1,484.88 ($123.74 x 12)

Cost of credit = $134.97 ($1,484.88 - $1,261.60 - $88.31)

Thus, the cost of credit for this loan is $134.97.

Learn more about the finance charge at https://brainly.com/question/4403314

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