Finance
An Ohio lender charges a borrower 3 points to buy down the interest rate on a $240,000 loan. What is the cost of the buydown?
A$5,400
B$7,200✓ Correct
C$8,640
D$9,000
Explanation
Cost of points = $240,000 × 3% = $7,200. Using the values given ($240,000), apply the appropriate formula..
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