Question

For each "point" you pay on a mortgage, you get a one-quarter percent reduction in the interest rate. You want to get a .375% reduction on your interest rate. How many points do you have to pay?

Answer 1

Answer: 1.5 points

Explanation:

Answer 2

The solution would be like this for this specific problem:

Convert ¼ to decimal = .25

Reduction you want = 0.375% / 0.25% = 1.428

Round your answer to the nearest tenths. So, you need to pay 1.5 points to get a .375% reduction on your interest rate