Real Estate Math

A Florida buyer needs to borrow $240,000. The lender charges 2 discount points. How much does the buyer pay for the points?

A$2,400
B$4,800✓ Correct
C$2,000
D$480

Explanation

1 discount point = 1% of the loan amount. 2 points = 2% of $240,000 = $240,000 × 0.

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