Question

Bill took out a $125,000.00 mortgage on a lake house. The bank charged 2 points at the closing.

The points amounted to $7,500.00. $2,500.00. $750.00. $5,000.00.

Answer 1

$2,500.00

Explanation:

Answer 2

the correct answer is option is option B

Explanation:

bill took mortgage on lake house of $125,000.00

the bank charge him 2 points at the closing.

2 point closing means bank charges 2 % on the amount.

hence we need to find 2 % of the mortgage on a lake house

so , the pointed amount will be

=
`(2)/(100)* 125,000.00`

= 0.02 × 125,000.00

= 2500

so, the point amounted is $2500

hence, the correct answer is option is option B