A company that has its loans serviced, for whatever reason, is usually charged a servicer’s fee. This fee is usually expressed:

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A company that has its loans serviced, for whatever reason, is usually charged a servicer’s fee. This fee is usually expressed:
A . As an annual fraction of a percentage of each interest payment
B . As an annual fraction of a percent of the principal balance of the loans or based on a percentage of each interest payment
C . As a monthly fraction of a percent of the principal balance of the loans or based on a percentage of each interest payment
D . As a monthly fraction of a percentage of each interest payment

Answer: B

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