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Based on the rates above, how much would Company X charge a customer

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Based on the rates above, how much would Company X charge a customer  [#permalink]

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New post 25 Jun 2018, 05:49
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A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

89% (01:21) correct 11% (01:28) wrong based on 708 sessions

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Based on the rates above, how much would Company X charge a customer with a low-use contract for using 95 message units in a month?


A. $9.30

B. $11.30

C. $12.88

D. $14.88

E. $16.18



NEW question from GMAT® Official Guide 2019


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Re: Based on the rates above, how much would Company X charge a customer  [#permalink]

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New post 25 Jun 2018, 06:21
Bunuel wrote:
Image

Based on the rates above, how much would Company X charge a customer with a low-use contract for using 95 message units in a month?


A. $9.30

B. $11.30

C. $12.88

D. $14.88

E. $16.18



NEW question from GMAT® Official Guide 2019


(PS02534)


Attachment:
PS02534_f008.jpg


The question has two parts..
Since the total messages is 95..
1) for first 75 messages..
20% discount on $10.00, so 80%of $10.00=10*80/100=8$
2) now for remaining 95-75=20 messages
0.0.65 @ per message= 20*0.065=1.3$

Total = 8+1.3=9.3$

A
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Re: Based on the rates above, how much would Company X charge a customer  [#permalink]

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New post 25 Jun 2018, 06:23

Solution



To find:
    • The amount company X will charge for using 95 message units in a month

Approach and Working:
    • Charge for the first 75 units = 10 – 20% of 10 = 10 – 2 = 8
    • Charge for the remaining = (95 – 75) * 0.065 = 1.3
    • Therefore, total charge = 8 + 1.3 = 9.3

Hence, the correct answer is option A.

Answer: A
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Based on the rates above, how much would Company X charge a customer  [#permalink]

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New post 25 Jun 2018, 12:17
1
Bunuel wrote:
Image

Based on the rates above, how much would Company X charge a customer with a low-use contract for using 95 message units in a month?


A. $9.30

B. $11.30

C. $12.88

D. $14.88

E. $16.18



NEW question from GMAT® Official Guide 2019


(PS02534)


Attachment:
PS02534_f008.jpg



I think the ans will be B i.e. $ 11.30 .

Total messages for which we have to calculate is 95.

Now it is upto 75 messages that one gets a discount of 20%, not above that.
for message above 75, it will be $10 plus $0.065 * 20 = 10 + 1.30 = $ 11.30 .

Waiting for OA now..
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Re: Based on the rates above, how much would Company X charge a customer  [#permalink]

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New post 26 Jun 2018, 18:15
Bunuel wrote:
Image

Based on the rates above, how much would Company X charge a customer with a low-use contract for using 95 message units in a month?


A. $9.30

B. $11.30

C. $12.88

D. $14.88

E. $16.18


The standard rate of $10.00 is charged at 20% less; thus, it is charged at 80%. Thus, for 95 units, a customer would be charged:

0.8(10) + 0.065 x 20 = 8 + 1.3 = $9.30

Answer: A
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Re: Based on the rates above, how much would Company X charge a customer  [#permalink]

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New post 26 Jun 2018, 23:15
1) (1-20%) = 0.8 * $10 = $8 first 75 messages
2) For the remaining 20 messages, i broke up $0.065 into ($0.06 * 20) + ($0.005 * 20) so that $20 * 6 = 120 => 1.20 with 2 decimals and $20 * 5 = 100 => 0.100 with 3 decimals.
3) $8.00 + 1.20 + 0.10 = $9.30
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Re: Based on the rates above, how much would Company X charge a customer  [#permalink]

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New post 11 Nov 2018, 10:32
1
GURUCHANAKYA wrote:
Bunuel wrote:
Image

Based on the rates above, how much would Company X charge a customer with a low-use contract for using 95 message units in a month?


A. $9.30

B. $11.30

C. $12.88

D. $14.88

E. $16.18



NEW question from GMAT® Official Guide 2019


(PS02534)


Attachment:
PS02534_f008.jpg



I think the ans will be B i.e. $ 11.30 .

Total messages for which we have to calculate is 95.

Now it is upto 75 messages that one gets a discount of 20%, not above that.
for message above 75, it will be $10 plus $0.065 * 20 = 10 + 1.30 = $ 11.30 .

Waiting for OA now..


I also answered B because I assumed that the discount is provided only for those people who sent less than 75 messages in total.
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Re: Based on the rates above, how much would Company X charge a customer   [#permalink] 11 Nov 2018, 10:32
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