Question
- a) Samantha decides to pay with her credit card while in New York City.
She spends
on her credit card over 10 transactions. Each transaction
is exactly
each. For every purchase she makes on her credit card, she is
charged a
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
to exchange her cash from CAD into USD, is it a better option for
Samantha to use cash or credit card while traveling? Explain.
She spends
is exactly
charged a
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
Samantha to use cash or credit card while traveling? Explain.
Ask by Rodriquez Whittaker. in Canada
Jan 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
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.
Solution

Sign in to Unlock Answers for Free!
A Learning Platform Trusted by Millions of Real Students and Teachers.

Answered by UpStudy AI and reviewed by a Professional Tutor
Like
The Deep Dive
To calculate the service fee on each
purchase, you multiply the transaction amount by the service fee percentage. So,
of
equals
. Each purchase incurs a service fee of
.
Now, for the total service fees Samantha paid on her 10 transactions, multiply the fee per transaction by the number of transactions. That’s
. So, in total, Samantha ended up paying
in service fees.
When comparing the credit card option to using cash with a flat exchange fee of
: If she uses cash, she pays
once, while using her credit card costs her
in fees for those 10 transactions. Therefore, using cash is the better option for Samantha, saving her
in fees for the trip!