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nevsk [136]
3 years ago
5

6) Jesse is buying a home for $450,000 at 7.8% interest and Jesse is putting 30% down? He wishes to buy 3 points what is the cos

t of the points?
Mathematics
1 answer:
krek1111 [17]3 years ago
3 0

Answer:

$9450

Step-by-step explanation:

Given that:

The price of the home = $450000

The interest = 7.8%

Down payment = 30% of price of the home

i.e 0.3 × 450000 = 135000

The principal outstanding balance = 450000 - 135000

= 315000

Finally, the cost of 3 points will be;

= 315000 \times \dfrac{3}{100}

= $9450

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