Real Estate Math

A Hawaii buyer must pay 2 discount points on a $400,000 loan. How much are the points?

AA. $4,000
BB. $8,000✓ Correct
CC. $2,000
DD. $800

Explanation

1 point = 1% of loan. 2 points = 2% × $400,000 = $8,000. Using the values given ($400,000), apply the appropriate formula.. The correct answer is B. $8,000.. This is a common calculation on the Hawaii real estate exam.

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