Which of the following is considered a finance charge?

A finance charge is any fee that a lender imposes on a borrower for the use of credit. This can include a variety of costs associated with a loan.

The inclusion of application fees, interest payable on the loan, and late payment fees as finance charges is significant. Application fees are considered part of the cost of obtaining credit, as they are charged by lenders for processing a loan application. Interest is the fee for borrowing money, which is a core component of any loan agreement and easily qualifies as a finance charge. Late payment fees are penalties imposed when payments are not made on time, and these charges also fall under the category of costs associated with borrowing.

Thus, all the items listed contribute to the total cost of borrowing, making them all finance charges. Therefore, recognizing that all of these options fall within the definition of a finance charge justifies why the correct answer encompasses all of them.