Finance
A Kentucky lender charges a 1% origination fee on a $175,000 loan. What is the dollar amount of the origination fee?
A$1,000
B$1,750✓ Correct
C$1,400
D$875
Explanation
Origination fee = Loan amount x Origination percentage. $175,000 x 1% = $1,750. An origination fee is charged by the lender for processing the loan application and is typically paid at closing.
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