Real Estate Math
A buyer purchases a home for $250,000 with a 10% down payment. The lender charges 2 discount points. How much will the buyer pay in discount points?
A$4,500✓ Correct
B$5,000
C$4,000
D$2,500
Explanation
Down payment = $250,000 × 0.10 = $25,000. Loan amount = $250,000 − $25,000 = $225,000. Each point = 1% of the loan. 2 points = $225,000 × 0.02 = $4,500.
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