Aleah Norris

Mathematics

9 March, 17:02

A store pays two fees when a customer uses a credit card to make a purchase. These fees include

• A flat fee of $0.25 and

• A processing fee equal to 2.75% of the dollar amount of the purchase

There is no sales tax on the purchase.

Part A: What is the amount, in dollars and cents, the store pays in fees for a $70.00 purchase by a

customer using a credit card?

Part B: The store gives a discount to customers who use cash instead of a credit card for a purchase.

The discount is equal to!

! of the 2.75% processing fee the store would be charged if a credit card was

used.

A customer will make a $200 purchase using cash. What will be the discount, in dollars and cents, for

using cash instead of a credit card on this purchase?