Real Estate Math
A property sells for $415,000. The buyer puts 10% down and the lender charges a 1% loan origination fee. What is the loan origination fee?
A$4,150
B$3,735✓ Correct
C$41,500
D$373.50
Explanation
Down payment = $415,000 × 0.10 = $41,500. Loan amount = $415,000 − $41,500 = $373,500. Origination fee = $373,500 × 0.01 = $3,735.
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