Question: Duff, Inc. borrowed from Martin Bank under a ten-year loan in the amount of $150,000 with a stated interest rate of 6%. Payments are due

Duff, Inc. borrowed from Martin Bank under a ten-year loan in the amount of $150,000 with a stated interest rate of 6%. Payments are due monthly, and are computed to be

$1,665. Martin Bank incurs $4,000 of direct loan origination costs and $2,000 of indirect loan origination costs. In addition, Martin Bank charges Duff, Inc. a four-point nonrefundable loan origination fee.
Martin Bank, the lender, has a carrying amount of

a. $144,000

b. $148,000

c. $150,000

d. $152,000

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