Question

A bank charges 3.1 discount points on a loan of $417,800. What is the cost of the points?

$8,356.00

$129,518.00

$12,951.80

$4,178.00

Answer 1

@ankit042

Answer 2

http://www.investopedia.com/terms/d/discountpoints.asp
Each discount point costs 1%

Answer 3

yes that part i know , now what?

Answer 4

Then you can easily solve it. 3.1 discount point will cost 3*1% of total cost

Answer 5

i got 1392.666 what did i do wrong?

Answer 6

how did you get 1392.666 can you show your calculation?

Answer 7

sure i did 3*1% and got 0.03, then i took the total amount which is $417,800 and divided it by 0.03

Answer 8

No you have to multiply by the total amount and there are 3.1 discount points

Answer 9

so it would be 417,800 * 0.03

Answer 10

Yeah it will be 417,800 * 0.031. discount points are 3.1

Answer 11

I got the 3rd choice!

Answer 12

You really are helping me understand this better. thank you

Answer 13

No problem!