A store pays two fees when a customer uses a credit card to make a purchase. These fees include
• A flat fee of $0.25 and
• A processing fee equal to 2.75% of the dollar amount of the purchase
There is no sales tax on the purchase.
Part A: What is the amount, in dollars and cents, the store pays in fees for a $70.00 purchase by a
customer using a credit card?
Part B: The store gives a discount to customers who use cash instead of a credit card for a purchase.
The discount is equal to !
! of the 2.75% processing fee the store would be charged if a credit card was
used.
A customer will make a $200 purchase using cash. What will be the discount, in dollars and cents, for
using cash instead of a credit card on this purchase?