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3. Kevin took out a loan for a car. He must pay $3,000.00 in interest, service

charges, and loan fees. What lending term best describes these costs?

User Jamesdlin
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1 Answer

4 votes

Answer:

The finance charge

Step-by-step explanation:

The finance charge is the total cost incurred when borrowing money, including interest amount and all other fees. It is the extra money paid on top of the borrowed amount. The finance charge may be a flat fee or a percentage of the principal amount.

The finance charge represents the expense incurred for using credit. The finance charge is an important consideration when choosing a preferred lender.

User Aiyagaze
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