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Question:1
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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