Real Estate Math
A property's purchase price is $180,000 with a 20% down payment. The buyer also pays 2 points on the loan. What is the total cost of the points?
A$2,880✓ Correct
B$3,600
C$3,200
D$2,500
Explanation
Loan = $180,000 × 80% = $144,000. Points = $144,000 × 2% = $2,880. To solve this, multiply the relevant values: $180,000 at 20%.. The correct answer is $2,880.. This is a common calculation on the Alabama real estate exam.
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