Real Estate Math
A Maine buyer wants to offer $320,000 for a property. The down payment is 20% and the buyer must pay 2 discount points. What is the cost of the points?
A$6,400
B$5,120✓ Correct
C$3,200
D$12,800
Explanation
Loan amount = $320,000 x 80% = $256,000. Cost of 2 points = $256,000 x 2% = $5,120. To solve this, multiply the relevant values: $320,000 at 20%.. The correct answer is $5,120.. This is a common calculation on the Maine real estate exam.
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