Real Estate Math
An Idaho property sells for $425,000. The buyer puts 20% down and obtains a loan. The lender charges 2 discount points. What is the dollar cost of the points?
A$6,400
B$6,800✓ Correct
C$7,200
D$7,600
Explanation
Loan amount = $425,000 x 80% = $340,000. Points cost = $340,000 x 2% = $6,800. Each discount point equals 1% of the loan amount.
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