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iren [92.7K]
4 years ago
15

Explain the difference between an interest rate and finance charge.

History
2 answers:
solniwko [45]4 years ago
7 0

Answer:

The difference between an interest rate and a finance charge is, an interest rate is a percentage of the money borrowed, when added to the principal sum when paying back. A finance charge is a fee for using credit.

Explanation:

I had the definitions already and just put them in the answer. Hope this helps!

Scrat [10]4 years ago
4 0
A finance charge is the total amount of money you owe to a lender for borrowing money.

interest is a part of the total finance charge.
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