Real Estate Math
A property sells for $175,000. The seller owes 4.5 points on a $140,000 loan. What is the total cost of the points?
A$6,300✓ Correct
B$7,875
C$5,250
D$8,400
Explanation
Points are based on the loan amount. 4.5 points = 4.5% × $140,000 = $6,300. Using the values given ($175,000, $140,000), apply the appropriate formula.. The correct answer is $6,300.. This is a common calculation on the Arkansas real estate exam.
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