Finance
A Louisiana lender requires a buyer to pay two discount points on a $220,000 loan at closing to obtain a lower interest rate. What is the total cost of the points?
A$2,200
B$3,300
C$4,400✓ Correct
D$5,500
Explanation
Each discount point = 1% of the loan amount. Two points = 2% × $220,000 = $4,400.
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