Real Estate Math
A Delaware buyer's loan amount is $240,000 at 5.5% annual interest. Points paid at closing are 2 points. What is the dollar cost of the points?
A$4,800✓ Correct
B$4,400
C$5,200
D$2,400
Explanation
One point = 1% of the loan amount. Cost of 2 points = 2% × $240,000 = $4,800.
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