Question 3 • Applications and Modeling
The 2.5 points add 2.5% of the original loan to its amount, so the final loan is 102.5% of the original. Divide $151,625 by 1.025 to find the amount before adding the points: $151,625 ÷ 1.025 = $147,926.83, rounded to the nearest cent. This matches choice C, $147,926.83.
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