Question

Bayani is charged 2 points on a $120,000 loan at the time of closing. The original price of the home

before the down payment was $140,000. How much do the points in dollars cost Bayani?

Answer 1

$2,400

Explanation:

0.02x$120,000 = $2,400

Answer 2

1 point = 1% of the loan.
The loan is $120,000.
Therefore 2 points cost 0.02*$120,000 = $2,400