Answer:
c. Keeping the movie and paying the purchase price and late fees is the cheaper option.
Explanation:
1. If Susan takes a cab and pays late fees
Cost of cab = $10.00
Late fees = 5 × 1.50 = 7.50
TOTAL = $17.50
2. If Susan keeps the movie
Purchase price of movie = $9.99
Late fees = 5 × 1.50 = 7.50
TOTAL = $17.49
Keeping the movie and paying the purchase price and late fees is the cheapest option.
a. is wrong. Taking a cab is the more expensive option.
b. is wrong. Susan contracted to return the movie, so she should try to do so.
c. is correct. This is a statement of fact, not a judgement call.
d. is wrong. Susan contracted to pay the late fees if she did not return the video (but she should still return it).