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Based on the Schumer Box, what is the transaction fee if a customer transfers a balance of \[tex]$300?

A. \$[/tex]10
B. \[tex]$25
C. \$[/tex]30
D. \[tex]$35

\begin{center}
\textbf{Fees}
\begin{tabular}{|c|c|}
\hline Annual Fee & \$[/tex]30 \\
\hline Transaction Fees & \begin{tabular}{l}
Balance transfers: \[tex]$10 or 3\% of the transaction (whichever is greater) \\
Cash advance: \$[/tex]10 or 3\% of the transaction (whichever is greater)
\end{tabular} \\
\hline Penalty Fees & \begin{tabular}{l}
Late fee: \[tex]$35 \\
Over-the-credit limit: \$[/tex]35 \\
Returned payment: \$25
\end{tabular} \\
\hline
\end{tabular}
\end{center}



Answer :

GinnyAnswer
Let's analyze the transaction fee for a balance transfer step by step:

1. Identify the balance transfer amount: The customer is transferring a balance of [tex]$300. 2. Determine the balance transfer fee options: - Fixed fee: $[/tex]10
- Percentage fee: 3% of the transaction amount

3. Calculate the percentage fee:
- 3% of [tex]$300 is calculated as follows: \[ 0.03 \times 300 = 9 \] So, the percentage fee is $[/tex]9.

4. Compare the fixed fee and the percentage fee:
- Fixed fee: [tex]$10 - Percentage fee: $[/tex]9

5. Determine which fee is greater:
- The greater of the two fees is [tex]$10. Therefore, the transaction fee for transferring a balance of $[/tex]300 is [tex]$10. Thus, the correct answer is: \[ \$[/tex]10
\]

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