Finance

A South Carolina lender charges 2% of the loan amount as an origination fee on a $250,000 loan. How much is this fee?

A$2,500
B$4,000
C$5,000✓ Correct
D$7,500

Explanation

Origination fee = Loan Amount × Rate = $250,000 × 2% = $250,000 × 0.02 = $5,000. To solve this, multiply the relevant values: $250,000 at 2%.. The correct answer is $5,000.. This is a common calculation on the South Carolina real estate exam.

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