The home that you want to purchase requires that you pay 3 points towards a $225,600 loan. Determine the cost of the home after the 3 points have been applied.

One point is 1% of the loan, so 3 points equal 3% of $225,600. The points cost $225,600 × 0.03 = $6,768; adding that to the loan gives $225,600 + $6,768 = $232,368. The correct choice is $232,368.

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