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.

Question

UpStudy AI · Accepted Answer

a) To find the service fee on each purchase, we need to calculate $$ 4\% $$ of the transaction amount.

Given:
- Transaction amount = $25
- Service fee percentage = 4%

Service fee on each purchase = $$ 4\% 	imes \$25 $$

b) To find the total service fee paid by Samantha, we need to calculate the service fee for each transaction and then sum them up.

Total service fee = Service fee on each purchase * Number of transactions

c) To determine if it is better for Samantha to use cash or credit card while traveling, we need to compare the total service fee paid with the flat rate charged by the foreign currency exchange counter.

If the total service fee paid is less than the flat rate charged, it is better to use cash. Otherwise, it is better to use credit card.
a) The service fee on each $25 purchase is $1. b) Samantha paid a total of $10 in service fees. c) Using a credit card is better for Samantha because the total service fee ($10) is less than the $5 flat rate charged by the foreign currency exchange counter.

Real Tutor Solution

Answer

Solution

The Deep Dive

Related Questions

Latest Arithmetic Questions