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QuizMultiple Choice

Consumer Responsibilities — Quiz

Question 1 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Susan makes a purchase of 175 dollars and is charged 7 point 7 5 percent 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 point 0 3 9 percent and pays the balance off at the end of 30 days?

Answer
A
190 point 7 7 dollars
B
186 point 7 0 dollars
C
200 point 2 6 dollars
D
176 point 1 7 dollars

Explanation

First add sales tax: $175 × 1.0775 = $188.5625. The daily interest rate is 0.039% = 0.00039, so over 30 days the interest is $188.5625 × 0.00039 × 30 ≈ $2.21. The total is about $190.77, which is choice A.

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