Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized for You

we will pick new questions that match your level based on your Timer History

Track Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

A credit card company plans to give rebate to users whose [#permalink]
31 May 2007, 10:49

1. A credit card company plans to give rebate to users whose amount of transaction by its credit card is over a certain level. It will give back 1% of amount that is more than $2,000 and less than or equal to $ 5,000 and 2% for the portion that is more than $5,000. If a person receives 1.3% of total amount as a rebate, what is the amount he used with the credit card?

(answer is 10000)

2. a, b, and c are consecutive integers where a<b<c. Which of the following values are not possible for the equation c^2-b^2-a^2

Confused a little about the solution [#permalink]
31 May 2007, 22:05

Why are we subtracting 5000 from 2000. i understand that these are the highest and lowest range values . But if there is 1% rebate refund on the portion which is any where btw 2000 and 5000. Then it can be 4000, or 2500. Right?

Re: Confused a little about the solution [#permalink]
31 May 2007, 22:30

001ash wrote:

Why are we subtracting 5000 from 2000. i understand that these are the highest and lowest range values . But if there is 1% rebate refund on the portion which is any where btw 2000 and 5000. Then it can be 4000, or 2500. Right?

according to the stem - the rebate starts at $2000 and not from the first $ (i.e person buying $1000 worth will get no rebate !!) so max rebate is $3000*0.01 on buying less then $5000.

Last edited by KillerSquirrel on 31 May 2007, 22:32, edited 1 time in total.

Re: prep questions [#permalink]
31 May 2007, 22:31

Jamesk486 wrote:

1. A credit card company plans to give rebate to users whose amount of transaction by its credit card is over a certain level. It will give back 1% of amount that is more than $2,000 and less than or equal to $ 5,000 and 2% for the portion that is more than $5,000. If a person receives 1.3% of total amount as a rebate, what is the amount he used with the credit card?

(answer is 10000)

Amount = X ; $2,000 < X <5> $ 5,000

Returned Back = (X - 5,000)/50 ( because 2% is only for the portion more than $ 5,000 )

Interest received is more than 1%. Therefore the amount ( X ) should be greater than $5000.

Therefore,

(2/100)*(X-5000) = (1.3/100)*X......................... ( i )

X = 14280

Please explain what is the mistake in the equation ..( i )

Why is the answer 10,000

2. a, b, and c are consecutive integers where a<b<c. Which of the following values are not possible for the equation c^2-b^2-a^2

Re: Confused a little about the solution [#permalink]
01 Jun 2007, 00:15

KillerSquirrel wrote:

001ash wrote:

Why are we subtracting 5000 from 2000. i understand that these are the highest and lowest range values . But if there is 1% rebate refund on the portion which is any where btw 2000 and 5000. Then it can be 4000, or 2500. Right?

according to the stem - the rebate starts at $2000 and not from the first $ (i.e person buying $1000 worth will get no rebate !!) so max rebate is $3000*0.01 on buying less then $5000.

:-D

Ohh ...Could you please explain once more in more simple way!!! Urrghhhh

Re: Confused a little about the solution [#permalink]
01 Jun 2007, 00:30

LM wrote:

KillerSquirrel wrote:

001ash wrote:

Why are we subtracting 5000 from 2000. i understand that these are the highest and lowest range values . But if there is 1% rebate refund on the portion which is any where btw 2000 and 5000. Then it can be 4000, or 2500. Right?

according to the stem - the rebate starts at $2000 and not from the first $ (i.e person buying $1000 worth will get no rebate !!) so max rebate is $3000*0.01 on buying less then $5000.

Ohh ...Could you please explain once more in more simple way!!! Urrghhhh

sure

this is the question:

credit card company plans to give rebate to users whose amount of transaction by its credit card is over a certain level. It will give back 1% of amount that is more than $2,000 and less than or equal to $ 5,000 and 2% for the portion that is more than $5,000. If a person receives 1.3% of total amount as a rebate, what is the amount he used with the credit card?

look at the bold part - the company will give a rebate of 1% only when you buy more then $2000

so if you buy $10,000 worth, then:

from 0 to $2000 = no rebate

from $2000 to $5000 = $30 rebate (1%)

from $5000 to $10,000 = $100 rebate (2%)

if you want to find the avarege rebate (given as 1.3%)

($2000*0%+$3000*1%+$5000*2%)/$10,000

I think you are missing $2000*0 = 0

we use 3000, because if the avarege rebate is more then 1% you can say thet the purchase amount has to be ! more then $5000 (in order to reach 1.3% rebate).

Last edited by KillerSquirrel on 01 Jun 2007, 00:40, edited 2 times in total.

Hayabusa, Could you please explain the " 3000 " in your equation? Why is it there and how is it calculated to be precisely 3000 and not any other value?