Question

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



Please select the best answer from the choices provided


A
B
C
D

Answer 1

C

Sales tax = 175 × 0.0775 = 13.5625 → subtotal = 188.5625
Interest = 188.5625 × 0.00039 × 30 = ≈ 2.20618
Total ≈ 188.5625 + 2.20618 = 190.76868 ≈ $190.77