Question

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

a.
A service charge is a fee which must be 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.
((I have the answer but I want to make sure it is completely accurate))

Answer 1

A service charge is a fee assessed by a lender or financial institution for providing a service,

Step-by-step explanation:

A service charge is a fee assessed by a lender or financial institution for providing a service, such as maintaining an account or offering customer support. On the other hand, a finance charge is a fee charged to a borrower for the cost of borrowing money, including the interest and any other fees associated with the loan.

For example, if you have a credit card, the annual fee or a fee for using an out-of-network ATM would be considered service charges. The interest charged on a credit card balance would be considered a finance charge.

Answer 2

the correct answer is d....