Real Estate Math
A Louisiana home sells for $385,000. The buyer puts 10% down and pays 2 discount points on the loan. What is the total cost of the discount points?
A$6,930✓ Correct
B$7,700
C$5,775
D$9,625
Explanation
Loan amount = $385,000 × 90% = $346,500. Cost of 2 points = $346,500 × 2% = $6,930. To solve this, multiply the relevant values: $385,000 at 10%.. The correct answer is $6,930.. This is a common calculation on the Louisiana real estate exam.
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