Real Estate Math
A South Carolina property sells for $195,000. The buyer puts 5% down and pays 2 discount points. What is the cost of the points?
A$3,705✓ Correct
B$3,900
C$3,510
D$3,750
Explanation
Loan amount = $195,000 × 95% = $185,250. 2 points = 2% of loan amount = $185,250 × 0.02 = $3,705. To solve this, multiply the relevant values: $195,000 at 5%.. The correct answer is $3,705.. This is a common calculation on the South Carolina real estate exam.
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