Question

On a trip to Spain Kelly brought a piece of jewellery that costs $50.75 she paid for with her credit card with charges of foreign transaction of a 4% fee The foreign transaction fee is

Answer 1

Transaction fee is $1.95 approximately.

Explanation:

Let the jewellrey costs $x before transaction fee.

So, we can set up equation for the given information as

x + 4% (x) = 50.75

Convert 4% to decimal by dividing it by 100.

x + 0.04 x=50.75

Simplify the left side of the equation.

1.04 x= 50.75

Divide both sides by 1.04

x= $48.7980..

So, transaction fee = 4% (48.7980)=$1.95 approximately.