Real Estate Math

A Nevada buyer needs to borrow $320,000. The lender charges 2 points. How much are the points?

A$3,200
B$6,400✓ Correct
C$9,600
D$12,800

Explanation

One point = 1% of the loan amount. 2 points = 2% × $320,000 = $6,400. Using the values given ($320,000), apply the appropriate formula.. The correct answer is $6,400.. This is a common calculation on the Nevada real estate exam.

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