Question

The finance charge is

A. The unpaid balance from last month
B. The New Balance this month
C. The amount of interest you pay on the unpaid balance
D. The minimum amount you pay on the balance

Answer 1

C is the answer to your question

Answer 2

The correct answer is C. The finance charge is the amount of interest you pay on the unpaid balance.

Explanation:

A financial charge is a fee that is charged for the privilege and convenience of using a credit card. Generally speaking, the term financial charges refers to the credit card interest rate. But it also includes other fees, for example advance cash.