Susan makes a purchase of $175 and is charged 7.75% for sales tax. What is the total cost of the purchase if Susan charges it on a credit card with a daily interest rate of 0.039% and pays the balance off at the end of 30 days?
a. $176.17
b. $186.70
c. $190.77
d. $200.26

ANSWERS

2017-08-19 12:22:17

The answer Is C. Just took the quiz :)

2017-08-19 12:23:32

Solve first for the total cost of the item with tax. Total cost= item +sales tax = $175(1+.0775) = $188.56 Use simple compunding interest formula where i= .00039 or 0.39% n=30 Present worth=$188.56 Total cost of the item if charged on credit card= 188.56(1+0.00039)^30 = $190.77The total cost of the item if charged on the credit card and paid at the end of the month is $190.77.

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