If a lending institution is paying an average of 2% per year for the money it borrows from its customers and is earning an average of 5.5% per year on the money it lends out to customers and the average loan costs 1% per year on overhead costs, how much will the lending institution make in profit in one year on a typical loan for $100,000.00?

$2,500.00

$3,500.00

$5,500.00

$3,000.00