Finance
A buyer pays 2 discount points on a $350,000 loan. How much does the buyer pay in discount points at closing?
A$3,500
B$7,000✓ Correct
C$10,500
D$17,500
Explanation
Each discount point = 1% of the loan amount. 2 points × 1% × $350,000 = 0.02 × $350,000 = $7,000. The buyer pays $7,000 in discount points at closing, in exchange for a reduced interest rate.
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