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# A customer using a certain phone calling plan pays a fee of

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Intern
Joined: 16 Jul 2003
Posts: 32
A customer using a certain phone calling plan pays a fee of [#permalink]

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06 Oct 2003, 21:06
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

A customer using a certain phone calling plan pays a fee 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 minutes, 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 hour 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
Senior Manager
Joined: 30 Aug 2003
Posts: 322
Location: dallas , tx

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08 Oct 2003, 12:09
HI !!
well, i think the question is not lcear.. do you have the answer?
_________________

shubhangi

SVP
Joined: 30 Oct 2003
Posts: 1790
Location: NewJersey USA

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08 Jan 2004, 09:41
He is charged a redular rate of $1.60 per minute for 60 minutes it will cost$96. But if he pays a fee of $25 per month he gets a discount of 40% on the regular calls. SO the cost for him to make one hour call is 25 + 0.6 * 96 =$82.60

On the second plan he pays $1.60 for first 3 minutes and 0.8 for every minute thereafter cost = 1.6*3+0.8*57 = 50.40 Savings withe second plan = 82.60-50.40 = 32.20 This answer is not mentioned. Hi praetorian123 How did you get$13.40 ?

Anand.
08 Jan 2004, 09:41
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