Anewengineering department head is joining the university and during a visit hasmade an offer on a homefor \($350\),000 with a 20 percent down payment. The offer has been accepted pending success in obtaining a satisfactory loan. A loan for \($280\),000 has been offered for 6.125 percent plus 3 points and ‘‘administrative costs’’ that have not been quantified.

The APR is quoted as 6.517 percent. Determine the ‘‘administrative costs.’’ Points apply to only the \($280\),000.