The correct answer is: C. Both above
Net interest is the interest that is earned on a loan after the deduction of any fees or other charges. Risk payoff/payment is a payment that is made to cover the risk of default on a loan.
Both net interest and risk payoff/payment can be included in the total interest. For example, if you borrow \$100 at a 10% interest rate for one year, you will pay \$10 in interest. However, if there is a \$50 origination fee, you will actually pay \$150 in total. This includes the \$100 principal, the \$10 interest, and the \$50 origination fee.
Risk payoff/payment is often included in the total interest when a loan is considered to be high-risk. For example, if you borrow money from a payday lender, you will likely be charged a high interest rate and a high risk payoff/payment. This is because payday lenders are taking on a lot of risk by lending money to people who may not be able to repay the loan.
It is important to understand all of the fees and charges that are associated with a loan before you borrow money. This will help you to avoid surprises and to make sure that you are able to afford the loan.