Real Estate Math
A buyer purchases a property for $475,000 with a 10% down payment. The lender charges 2 discount points. How much are the discount points in dollars?
A$9,500
B$8,550✓ Correct
C$4,750
D$9,025
Explanation
Down payment = $475,000 × 10% = $47,500. Loan amount = $475,000 − $47,500 = $427,500. Each point = 1% of loan. 2 points = $427,500 × 0.02 = $8,550.
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