What is typically included in the calculation of a loan's finance charge?

The finance charge of a loan represents the total cost of borrowing expressed as a dollar amount. This charge generally encompasses several costs associated with obtaining credit, including the interest paid over the life of the loan. Therefore, including the total interest paid in the calculation of the finance charge is correct, as interest is a significant component of the overall borrowing cost.

In contrast, other options listed do not fit within the finance charge calculation. The down payment amount is not included because it is not part of the cost of borrowing; rather, it is an upfront payment made at the start of a loan. The market value of the asset pertains to the collateral involved in the loan, not the cost of obtaining the loan itself. Lastly, while late fees may contribute to the overall cost incurred by the borrower, they do not reflect the normal borrowing costs associated with the loan and thus are typically not included in the standard finance charge calculation.