On April 1, year 1, Mary borrowed $120,000 to refinance the original mortgage on her principal residence. Mary paid 3 points to reduce her interest rate from 6 percent to 5 percent. The loan is for a 30-year period. How much can Mary deduct in year 1 for her points paid?

Multiple Choice

A) $2,700.00.

B) $120.00.

C) $90.00.

D) $3,600.00.