Many e-commerce businesses use PayPal to perform payment processing for them. For certain transactions, merchants are charged a fee of 2.4% of the selling price of the item plus $0.40. What would PayPal charge an online art store to collect payment on a painting selling for $400?
Michael K. | QuickBooks Trainer & ConsultantQuickBooks Trainer & Consultant
Obiviously, Keven meant to say:
Fee = 0.024(400) + 0.40
I just wanted to clearify it just in case.
Kevin S. |
5.05.0(4 lesson ratings)(4)
Since the variable quantity here is the selling price, let's let it equal x. Since Paypal takes 2.4% of the selling price ("of" implies multiplication,) and adds a constant $0.40 to the percentage, we start with
Fee= 2.4%x + 0.40 = 0.24x + 0.40
Since x is the selling price, and the painting sold for $400, then