Finance
A Florida lender charges 2 discount points on a $250,000 mortgage. What is the dollar cost of the points?
A$2,500
B$5,000✓ Correct
C$7,500
D$10,000
Explanation
Each discount point equals 1% of the loan amount. 2 points × 1% × $250,000 = $5,000. Discount points are prepaid interest paid upfront to lower the interest rate.
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