Finance

A South Dakota buyer pays 1.5% origination fee on a $240,000 loan. How much is the origination fee?

A$2,400
B$3,600✓ Correct
C$4,800
D$1,200

Explanation

Origination fee = $240,000 × 1.5% = $3,600. To solve this, multiply the relevant values: $240,000 at 1.5%.. The correct answer is $3,600.. This is a common calculation on the South Dakota real estate exam.

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