Question

Susan makes a purchase of $175 and is charged 7.75% for sales tax. What is the total cost of the purchase if Susan charges it on a credit card with a daily interest rate of 0.039% and pays the balance off at the end of 30 days

Answer 1

$190.77

Step-by-step explanation:

Given that:

Actual purchase price = $175

Sales tax = 7.75%

Total = actual price + sales tax

Total = actual sales price + (7.75% * Actual sales price)

Total = $175 + (0.0775 * $175)

Total = $188.5625

To pay with credit card at 0.039% daily interest for 30 days :

(188.5625 * 0.039% * 30) + 188.5625

2.20618125 + 188.5625

= $190.76868125

= $190.77