Question

The Smiths are buying a house for $200,000. After their 10% down payment, they have also decided to pay two discount points. What is the dollar amount of the discount points

Answer 1

Based on the information given the dollar amount of the discount points is $3,600.

Discount:

First step is to calculate the down payment

Down payment=$200,000-($200,000×10%)

Down payment=$200,000-$20,000

Down payment=$180,000

Second step is to calculate the discount points

Discount point=Down payment× Discount points

Discount point=$180,000×2%

Discount point=$3,600

Inconclusion the dollar amount of the discount points is $3,600.

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