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Re: A certain shipping service charges an insurance fee of $0.75 when ship [#permalink]
Bunuel wrote:
A certain shipping service charges an insurance fee of $0.75 when shipping any package with contents worth $25.00 or less and an insurance fee of $1.00 when shipping any package with contents worth over $25.00. If Dan uses the shipping company to ship three packages with contents worth $18.25, $25.00, and $127.50, respectively, what is the total insurance fee that the company charges Dan to ship the three packages?

A. $1.75
B. $2.25
C. $2.50
D. $2.75
E. $3.00



Note :

1. For any package worth $25 or less, charge is 0.75

2. For any package worth more than $25, charge is 1.

Total charge :

18.25......................0.75

25.........................0.75

127.50...................1

So, ( 0.75 +0.75 +1 ) = 2.50.

The best answer is C.
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Re: A certain shipping service charges an insurance fee of $0.75 when ship [#permalink]
Expert Reply
Bunuel wrote:
A certain shipping service charges an insurance fee of $0.75 when shipping any package with contents worth $25.00 or less and an insurance fee of $1.00 when shipping any package with contents worth over $25.00. If Dan uses the shipping company to ship three packages with contents worth $18.25, $25.00, and $127.50, respectively, what is the total insurance fee that the company charges Dan to ship the three packages?

A. $1.75
B. $2.25
C. $2.50
D. $2.75
E. $3.00


For the two lower value packages, the insurance fee is 2 x 0.75 = $1.50. For the highest value package, the insurance fee is $1.00. Thus, the total insurance fee is 1.50 + 1.00 = $2.50.

Answer: C
GMAT Club Bot
Re: A certain shipping service charges an insurance fee of $0.75 when ship [#permalink]
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