Question

Explain the difference between an interest rate and finance charge.

Answer 1

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.

Step-by-step explanation:

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

Answer 2

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.