Explanation:
what we were not told is, if he charges a full hour for a fraction of an hour, or only a corresponding fraction of his hourly rate.
I assume the first : charging a full hour for any fraction of an hour spent.
it took him 2h and 45 minutes, so that is 3 hours charged.
and he was driving
25423 - 25263 miles = 160 miles
so, he charges
3×7 + 160×0.40 = 21 + 64 = £85
if he charges also fractions of his hourly rate, then his hourly charge would be
2 3/4 × 7 = (2×4 + 3)/4 × 7 = 11×7/4 = 77/4 = £19.25
in total that would be
19.25 + 64 = £83.25