Question

Sally and Dan must pay 2 points on their new $65,000 loan. What will they have to pay at closing for the points?

A. $650
B. $1,300
C. $1,950
D. $2,600

Answer 1

correct option is B. $1,300

Step-by-step explanation:

given data

loan = $65,000

pay = 2 points

solution

As we know normally point worth = 1%

and they pay 2 point so that

2 point = 2 % = 0.02

so pay at closing for the points will be

pay closing for the points = 0.02 × loan amount .....................1

pay closing for the points = 0.02 × $65000

pay closing for the points = $1300

so correct option is B. $1,300