Question

If escrow fees are calculated at 2 dollars per thousand and a flat 200 dollars processing fee, then how much is a 25 thousand dollar purchase going to cost in fees?

Answer 1

Answer:

The amount of fees to be paid for a purchase of 25 thousand dollars is 250 dollars.

Step-by-step explanation:

To find out the cost of fees we need to take the total amount of the purchase in thousands and multiply it by two, since we have to pay 2 dollars for every thousand we purchase after that there's an added fee of 200 that doesn't change with the amount purchased. So we have:

Variable fee = 25*2 = 50 dollars

Total fee = Variable fee + 200 = 50 + 200 = 250 dollars