To calculate the total amount that Annie spent, we need to add the cost of the watermelon ($2.75) and the bag of potatoes ($4.33).
\[ 2.75 + 4.33 \]
Align the numbers by their decimal points:
2.75
+ 4.33
______
Now, add the numbers:
- Add the hundredths place: \(5 + 3 = 8\)
- Add the tenths place: \(7 + 3 = 10\) (write down 0 and carry over 1)
- Add the units place: \(2 + 4 + 1 = 7\)
Putting it all together:
2.75
+ 4.33
______
7.08
Thus, the total amount Annie spent at the produce stand is $7.08.
The correct answer is $7.08.