Answer:
$37,500
Step-by-step explanation:
The amount of the fee is the product of the fee rate and the amount to which that rate is applied.
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3.75% × $1,000,000 = 0.0375 × $1,000,000 = 37.5 × $1000
= $37,500
The fee on a $1M loan could range up to $37,500.
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Additional comment
If you're computing this by hand, it can be easier to (a) use scientific notation, or (b) adjust the decimal points as we have shown here. In this case, we multiplied the percentage by 1000 and divided the loan amount by 1000. The product remains the same, but the numbers are easier to deal with.
In scientific notation, this is 3.75E-2 × 1E6 = 3.75E4 = 37.5E3 = 37,500, where the "E" notation would be that used by a calculator or spreadsheet.
