Real Estate Math
A buyer puts 20% down on a $425,000 home. The lender charges 2 discount points. How much does the buyer pay in points?
A$6,800✓ Correct
B$7,200
C$8,500
D$5,950
Explanation
Loan amount = $425,000 × 80% = $340,000. 2 points = 2% × $340,000 = $6,800. To solve this, multiply the relevant values: $425,000 at 20%.. The correct answer is $6,800.. This is a common calculation on the Indiana real estate exam.
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