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Sub 505 (Easy)|   Word Problems|                  
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Bunuel
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Based on the rates above, how much would Company X charge a customer 25 Jun 2018, 05:49
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

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5% (low)

Question Stats:

92% (01:22) correct 8% (01:41) wrong based on 2486 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

(PS02534)

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A
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Based on the rates above, how much would Company X charge a customer 25 Jun 2018, 06:23
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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 25 Jun 2018, 12:17
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Bunuel


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
Show more

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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Based on the rates above, how much would Company X charge a customer 26 Jun 2018, 18:15
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Bunuel


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
Show more

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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Based on the rates above, how much would Company X charge a customer 11 Nov 2018, 10:32
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GURUCHANAKYA
Bunuel


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)


Show Spoiler
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..
Show more

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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Based on the rates above, how much would Company X charge a customer 06 May 2021, 23:56
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Bunuel


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
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Answer: Option A

Video solution by GMATinsight

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Based on the rates above, how much would Company X charge a customer 08 Aug 2021, 02:32
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Video solution from Quant Reasoning:
Subscribe for more: https://www.youtube.com/QuantReasoning? ... irmation=1
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Based on the rates above, how much would Company X charge a customer 09 Oct 2023, 23:38
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Question is ambiguous in my pow.

It does not explicitly say what's the rate for 95 messages.

Why can't I deduce that for 95 messages discounted rate doesn't work (Because it's applied only for messages under 75) and I must pay standard $10 plus 20x0,065.

What word/part am i getting wrong?
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Based on the rates above, how much would Company X charge a customer 10 Oct 2023, 00:06
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temog
Question is ambiguous in my pow.

It does not explicitly say what's the rate for 95 messages.

Why can't I deduce that for 95 messages discounted rate doesn't work (Because it's applied only for messages under 75) and I must pay standard $10 plus 20x0,065.

What word/part am i getting wrong?
Show more

The monthly rate, which includes up to 75 message units, is already provided at a discount. So, for the first 75 units, the customer pays the discounted rate of $8. Any usage beyond those 75 units (in this case, 20 additional units) incurs a charge of $0.065 per unit.

Your misunderstanding comes from assuming that the discounted rate doesn't apply for the entire 95 messages. In fact, the discounted rate applies for the first 75 units, and the excess is charged separately.

Also note that, the question is from the Official Guide, so its quality is as good as it gets. Doubting its accuracy is counterproductive; the focus should be on understanding the logic.
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Based on the rates above, how much would Company X charge a customer 21 Feb 2025, 23:54
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