Larry Mager purchased a ski lodge in Telluride for $850,000. His bank is willing tofinance 70% of the purchase price. As part of the mortgage closing costs, Larry had topay 4 1/4 discount points. How much did this amount to?Purchase price =Amount financed =Points =

Purchase price = $850,000 Finance percentage = 70% Discount points = 4 1/4 or 17/4

Answered: Larry Mager purchased a ski lodge in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Larry Mager purchased a ski lodge in Telluride for $850,000. His bank is willing to finance 70% of the purchase price. As part of the mortgage closing costs, Larry had to pay 4 1/4 discount points. How much did this amount to?