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?

$176.17
$186.70
$190.77
$200.26

Answer 1

Sales tax = 175(0.0775) = 13.5625, so purchase with tax = 175 + 13.5625 = 188.5625.

30-day interest rate = 30(0.039%) = 1.17% = 0.0117.
Interest = 188.5625(0.0117) = 2.20618...

Total = 188.5625 + 2.20618... ≈ $190.77.

Answer: $190.77.