Question

Change histul

bols
A store pays two fees when a customer uses a credit card to make a purchase. These fees include:
A flat fee of $0.15
A processing fee equal to 1.75% of the dollar amount of the purchase
There is no sales tax on the purchase.
What is the amount, in dollars and cents, the store pays in fees for a $60.00 purchase by a customer using a credit
card?**

Answer 1

So the amount to pay is $1 and 20 cents ( or a total of 120 cents)

Explanation:

Here, we want to know the amount paid as fees for a $60 purchase given that the store has to pay a flat fee of $0.15 and a processing fee of 1.75% of the amount of purchase.

Firstly, we establish that there are two fees to be paid.

We already have a fee of $0.15

The other fee to pay is 1.75% of $60

Mathematically that would be;

1.75/100 * 60 = $1.05

Thus, the fees to be paid on the $60 purchase is $1.05 + $0.15 = $1.20