Real Estate Math

A North Dakota lender charges an origination fee of 1.5% on a $195,000 loan. The origination fee is:

A$2,925✓ Correct
B$1,950
C$3,900
D$975

Explanation

Origination fee = Loan amount × Origination rate = $195,000 × 1.5% = $2,925.

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