Answer:
The total cost per month is $190.76 to the nearest cent.
Explanation:
From the given table, the monthly service plan costing $52.00 is:
- Monthly Service Plan = $52.00
- Number of included minutes per month = 2,000 minutes
- Cost per additional line per month = $21.99
- Overage per minute rate = $0.06
The base calling plan includes two lines.
Therefore, for 4 lines, we will need to pay for 2 additional lines per month:
⇒ $21.99 × 2 = $43.98 per month
If 3,487 minutes are used per month, then the overage of minutes is:
⇒ 3487 - 2000 = 1487 minutes per month
As the overage rate is $0.06 per minute, then the cost of the additional minutes is:
⇒ 1487 × $0.06 = $89.22 per month
Therefore, the total cost per month before tax is:
⇒ $52.00 + $43.98 + $89.22 = $185.20
To apply the federal tax of 3%, multiply the total cost by 1.03:
⇒ $185.20 × 1.03 = $190.756 = $190.76 (nearest cent)
Therefore, the total cost per month is $190.76 to the nearest cent.