Finance (alternative)
A Maryland buyer taking a $400,000 mortgage with 2 points paid upfront is paying:
A$4,000
B$8,000✓ Correct
C$10,200
D$16,000
Explanation
2 points = 2% of loan amount = 2% × $400,000 = $8,000. Using the values given ($400,000), apply the appropriate formula.. The correct answer is $8,000.. This is a common calculation on the Maryland real estate exam.
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