Finance
A West Virginia lender charges 2 discount points on a $180,000 loan. Each discount point equals 1% of the loan amount. What is the total cost of the discount points?
A$1,800
B$3,600✓ Correct
C$2,700
D$900
Explanation
1 discount point = 1% of $180,000 = $1,800. 2 discount points = 2 x $1,800 = $3,600. Discount points are prepaid interest used to buy down the loan's interest rate.
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