A department store is having a 15% off sale on all winter coats. You purchase a coat for $275. The department store is located i
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Answer:
The discount points will cost 3749.
Step-by-step explanation:
The first monthly interest payment is $820.
So, annual interest paid = = $9,840
Now, converting the annual interest to decimal = = $93,714.28
As given, the bank requires 4 discount points, this becomes 0.04.
So, total loan amount = = $3748.57 ≈ $3749
Hence, the discount points will cost 3749.