Randall and Augustine are financing $148,000 to purchase a condominium. They obtained a 15-year, fixed-rate loan with a rate of 4.95%. They have been given the option of purchasing up to five points to lower their rate to 4.73%. How much will the five points cost them?

Question

anonymous · Answer

I got 7,326 but that isn't any of my answer choices

anas.p · Answer

Simple Interest formula is P*R*T wherein R is in decimals.( I mean 75% = 0.75)
148*0.0495*15=109.8   This is the interest they would have to pay
148*0.0473*15=105.0
109.8-105.0=4.8
Does that match anything.

anonymous · Answer

No , you used the wrong formula. 
$7,000.40 

 $325.60 

 $1,480.00 

 $7,400.00

anas.p · Answer

multiply it by thousand 4.8 * 1000 = 4800
sorry forgot to write that

anas.p · Answer

what formula did you use?

anonymous · Answer

I just followed an example and did 148000x0.05 = 7,400

anonymous · Answer

Huh I just want to know If i Got it right.