Question

What is the difference between a service charge and a finance charge?

A) A service charge is a fee which must paid every month, while a finance charge is a one-time fee assessed at the beginning or end of a loan period.
B) A service charge is a flat fee charged to a borrower, while a finance charge is a fee charged to a borrower based on the amount borrowed.
C) A service charge is a fee assessed by a lender, while a finance charge is a fee charged by a financial institution, such as a bank.
D) A service charge is a fee assessed by a lender other than interest, and a finance charge is the total of the interest paid on a loan and the service charge.
Please EXPLAIN work in detail, Thank You!

Answer 1

D) A service charge is a fee assessed by a lender other than interest, and a finance charge is the total of the interest paid on a loan and the service charge.

According to accounting and finance terminology, the finance charge is the total fees that you pay to borrow the money in question. This means that the finance charge includes the interest and other fees that you pay in addition to paying back the loan.

Answer 2

Answer:d

Step-by-step explanation: because that’s the answer