Determine the cost of credit for a $3,300 loan with a simple interest rate of 8% and a one-time payment to pay the amount in full at the end of a 4-year term. Round the answer to two decimal places as needed. (1 point)
The cost of credit can be determined by multiplying the loan amount by the interest rate and the term of the loan.
Interest = Loan amount * Interest rate * Term
Interest = $3,300 * 0.08 * 4
Interest = $1,056
Therefore, the cost of credit for a $3,300 loan with a simple interest rate of 8% and a one-time payment at the end of a 4-year term would be $1,056.