Question

A $75,000 loan requires $1,875 in discount points to be paid by seller and $375 in discount points to be paid by the buyer. This is how many total discount points?

Answer 1

0.03

Explanation:

We have been given that a $75,000 loan requires $1,875 in discount points to be paid by seller and $375 in discount points to be paid by the buyer.

First of all, we will add the seller discount points and buyer discount points.

`\$1875+\$375=\$2250`

Now, we will divide sum of discount points by total loan amount to find the total discount points as:

`\text{Total discount points}=(\$2250)/(\$75,000)`

`\text{Total discount points}=0.03`

Therefore, total discount points would be 0.03.