Carter needed $2,000 to buy a car. Broker Denton negotiated the loan for him. Carter gave the lender his note for $2,400 secured by a second deed of trust against his home. The note was payable $77 per month including 10% interest per annum over a three-year term. Carter signed a broker's loan statement showing that he would receive an estimated $1,980 from the completed transaction. The total principal amount which Carter must pay to the lender is:

A: $1,980;
B: $2,200;
C: $2,400;
D: $2,772.

Answer: C: $2,400;