2. a) Samantha decides to pay with her credit card while in New York City. She spends \( \$ 250 \) on her credit card over 10 transactions. Each transaction is exactly \( \$ 25 \) each. For every purchase she makes on her credit card, she is charged a \( 4 \% \) service fee. How much is the service fee on each purchase? b) How much did Samantha pay in service fees in total? c) If a foreign currency exchange counter was to charge her a flat rate of \( \$ 5.00 \) to exchange her cash from CAD into USD, is it a better option for Samantha to use cash or credit card while traveling? Explain.

To calculate the service fee on each \( \$ 25 \) purchase, you multiply the transaction amount by the service fee percentage. So, \( 4\% \) of \( \$ 25 \) equals \( 0.04 \times 25 = \$ 1.00 \). Each purchase incurs a service fee of \( \$ 1.00 \). Now, for the total service fees Samantha paid on her 10 transactions, multiply the fee per transaction by the number of transactions. That's \( \$ 1.00 \times 10 = \$ 10.00 \). So, in total, Samantha ended up paying \( \$ 10.00 \) in service fees. When comparing the credit card option to using cash with a flat exchange fee of \( \$ 5.00 \): If she uses cash, she pays \( \$ 5.00 \) once, while using her credit card costs her \( \$ 10.00 \) in fees for those 10 transactions. Therefore, using cash is the better option for Samantha, saving her \( \$ 5.00 \) in fees for the trip!