GMAT Quantitative Reasoning Practice Test 3

Since you spend $\mathrm{\$}2.75$ for the first quarter mile, you have $\mathrm{\$}3.75\left(6.5-2.75\right)$ left to spend on $\frac{1}{4}$ mile intervals. $\mathrm{\$}3.75$ divided by $\mathrm{\$}.125$ equals 30 quarter miles. The 30 miles, plus the initial quarter mile, makes a total of 31 quarter miles. 31 quarter-miles equal $7.75$ miles