Answer Happy

Choose the best answer to the following question. Explain yourreasoning with one or more complete sentences.
What does a loan of
​$100,000
that carries a
4​-point
origination fee require as an advance​ payment?
Question content area bottom
Part 1
Choose the correct answer below.
A.An advance payment of
​$4,000
is required. Each point is​ 1% of the loan​ amount, sothe advance payment amount is
4​%
of
​$100,000.
B.An advance payment of
​$2,000
is required. Each point is​ 1% of the loan​ amount, sothe advance payment amount is
4​%
of
​$100,000.
C.An advance payment of
​$400
is required. Each point is worth between 50 and 100 pointsdepending on the prepayment penalties.
D.An advance payment of
​$400
is required. Each point is​ 1% of the loan​ amount, sothe advance payment amount is
4​%
of
​$100,000.
E.An advance payment of
​$2,000
is required. Each point is​ 10% of the loan​ amount,so the advance payment amount is
4​0%
of
​$100,000.
F.An advance payment of
​$4,000
is required. Each point is​ 10% of the loan​ amount,so the advance payment amount is
4​0%
of
​$100,000.