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

Answer:

0.03

Step-by-step 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:

$\text{Total discount points}=\frac{\ 2250}{\ 75,000}$

$\text{Total discount points}=0.03$

Therefore, total discount points would be 0.03.