Finance charges are the cost of credit expressed as a yearly percentage representing the additional amount paid for borrowing money.
Finance charges represent the cost of credit expressed as a yearly percentage. It is the additional amount paid for borrowing money, on top of the principal, usually quoted annually. For example, a loan with a 5% annual finance charge on a principal of [tex]$1,000 would require an additional $[/tex]50 payment annually.
https://brainly.com/question/42631786