Real Estate Math

A Wisconsin property sells for $425,000. The buyer puts down 15% and pays 2 discount points on the loan. How much are the discount points?

A$7,225✓ Correct
B$7,000
C$7,500
D$8,500

Explanation

Loan = $425,000 × 85% = $361,250. Points = $361,250 × 2% = $7,225.

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