Mr. Paulson has just borrowed $1,000 from Mr. Black. Mr. Paulson has agreed to pay Mr. Black $300 in one week, $400 in two weeks, and $500 in three weeks. If the interest rate is 1% per week, what is the future value of this payment stream in 3 weeks' time? Multiple Choice $1,222.13 $1,200.00 $1,210.03 $1,178.34 $1,190.13 Show all the steps and formulas if necessary

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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.