Cost of the house = 175,000 dollars.
He came with a check of 6,840 dollars at closing. Given are the costs of purchasing a house as follows :-
Title Fee = 545 dollars
Processing Fee = 2100 dollars
Appraisal = 695 dollars
Total Cost = Title Fee + Processing Fee + Appraisal.
Total Cost = 545 + 2100 + 695 = 3340 dollars.
Check amount = 6840 dollars.
Balance amount = Check amount - Total costs = 6840 - 3340 = 3500 dollars.
Eugene purchased points = [tex]\frac{3,500}{175,000} *100=2\%[/tex]
So, he purchased 2 points on basis of 100.
