Real Estate Math

A Wisconsin home costs $325,000. The buyer makes a 20% down payment and pays 1.5 discount points. How much does the buyer pay in discount points?

A$3,250
B$3,500
C$3,900✓ Correct
D$4,875

Explanation

Loan amount = $325,000 × 80% = $260,000. Points = $260,000 × 1.

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