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).