Finance
A lender's 'points' are expressed as a percentage of the loan amount. If a borrower pays 2 points on a $200,000 loan, they pay:
A$200
B$2,000
C$4,000✓ Correct
D$20,000
Explanation
One point = 1% of the loan amount. 2 points on $200,000 = 2% × $200,000 = $4,000.
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