$699.95×20%=$139.99, is the finance charge.
A finance charge is any fee that reflects the cost of credit or borrowing under American law.
Some forms of credit have fees and interest that accrue over time. [1] In addition to interest, it also includes additional costs, like those for financial transactions.
The Truth-in-Lending Act and Regulation Z, which were issued by the Statutory Reserve Board, contain information about the federal definition of a finance charge.
A financing charge in personal finance is just the cash amount paid to borrow money, whereas interest is the amount paid as a percentage, such as the annual percentage rate (APR).
Compared to standard dictionary definitions or accounting definitions, these definitions are more specific.
Lenders and creditors both calculate finance charges in different ways. a majority.
Hence, $699.95×20%=$139.99, is the finance charge.
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