Frank bought furniture worth $5,230 for his new house and used his credit card to make the payment. However, because of financial constraints, he was unable to clear the outstanding amount within the bank's stipulated time. This resulted in the bank charging Frank an additional $25. This additional amount that Frank needs to pay to the bank is referred to as the _____.

Question

Quizplus · Accepted Answer

The additional amount that Frank needs to pay to the bank is referred to as the late fee, which is charged when a payment is not made on time. Options A and D are not correct terms for this scenario, and "charge-off" refers to a debt that is unlikely to be collected and is written off by the creditor.

Frank Bought Furniture Worth $5,230 for His New House and Used