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.
The formula to calculate the simple interest is:
Interest = Principal * Rate * Time
Plugging in the values:
Interest = 3300 * 0.08 * 4
Interest = $1056
Therefore, the cost of credit for a $3300 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 is $1056.