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A customer using a certain telephone calling plan pays a

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Intern
Joined: 04 Oct 2003
Posts: 42
Location: Silicon Valley, CA
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A customer using a certain telephone calling plan pays a [#permalink]  21 Dec 2003, 20:15
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A customer using a certain telephone calling plan pays a fees of $25 per month, and then receives a discount of 40% on the regular charge for all calls made to country A. If calls to country A are regularly charged at$1.60 per minute for the first 3 mins, and $0.80 per minute for each minute thereafter, what is the maximum the customer could have saved over regular prices if he was charged for 1 hr of calls made to country A in a certain month? a.$8.75
b. $12.00 c.$13.40
d $17.40 e$24.40

>>>>> Please explain how you get the Ans. My ans is not in the choices given in the question.
Sorry for the typo. it was 80 cents. [\b]

Last edited by bat_car on 22 Dec 2003, 19:34, edited 1 time in total.
Director
Joined: 13 Nov 2003
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my solution: If the customer calls for less than 3 min every time the max charge is 60x1,6=96$, when the customer uses this plan he pays 25$+60% of the calls to country A. 60%x96$=57,6$+25$=82,6$ , so when he is not using the plan he pays 96 max, the saving then are 96$-82,6$=13,4$or C) Director Joined: 14 Oct 2003 Posts: 588 Location: On Vacation at My Crawford, Texas Ranch Followers: 1 Kudos [?]: 9 [0], given: 0 [#permalink] 22 Dec 2003, 07:18$80/Minute????!!!! Is this person calling Uranus???!!!
Intern
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Indeed ans is C [#permalink]  22 Dec 2003, 19:42
For some reason, I was stuck on the fact that he will pay $25 in both cases. But you are correct by not including the$25 when there is no discount. Then he pays only per use fees.

Titleist- Thanks for pointing our the unearthly mistake on the call charge.

BG how did you figure out the 80 cent thing. Or you made a mistake too and then got 2 -ves make a positive effect.
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Joined: 30 Oct 2003
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Location: NewJersey USA
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What about the 80 cents per minute after first three minutes. Why is that data present there ? Is it just to know that the hourly rate is \$1.60 per minute ?
GMAT Club Legend
Joined: 15 Dec 2003
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80c / min is there just to confuse you. What you really need is the MAX amount that could be saved between the two plans. Therefore, you only need to calculate how many 3 min. call at 1.6 / min you can make so as to save the most.
_________________

Best Regards,

Paul

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