Question

Customer World provides products and services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a computer for $600 and used a credit card to pay. The credit card company charges Computer World a transaction fee equal to $0.20 + 1% of the total charge. What is the transaction fee Customer World must pay on this sale?

Answer 1

$6.20

Step-by-step explanation:

The computation of the transaction fee is shown below:

= 1% of the total charge + $0.20

= 1% × $600 + $0.20

= $6 + $0.20

= $6.20

Simply we calculated the total charge value and then added the given fee which is mentioned in the question.

Here, total charge means the purchase value of the computer which is purchased by the customer