Which of the following is defined as the cost of credit expressed as a dollar amount?

The finance charge represents the cost of credit expressed as a dollar amount. It encompasses all the costs associated with borrowing, which can include interest, fees, and any other charges the borrower must pay over the life of the loan. This total amount allows consumers to understand the total cost they will incur for borrowing funds, making it easier to compare different loan options.

On the other hand, the annual percentage rate (APR) gives a yearly rate that includes not just the interest but also some of the fees associated with the loan, represented as a percentage rather than a dollar amount. Loan-to-value (LTV) ratio is a measure used to assess the risk involved in lending by comparing the loan amount to the value of the property. Debt ratios are calculations used to evaluate an individual’s financial health by comparing their total debt to their income. Each of these terms has a specific function in financial transactions but does not provide a straightforward dollar amount for the cost of credit like the finance charge does.