Question

A lender is charging 2.75 points on a $275,000 loan. The borrower must therefore pay the lender an advance amount of $11,000. $6,188. $7,563. $2,750.

Answer 1

Given that lender is charging 2.75 points for given amount so we multiply $275000 with 2.75/100

Multiplying both gives 275000* 2.75/100 = 275000* 0.0275 = 7562.5

Which is approx $7563.

Hence $7563 is the correct answer.