A customer using a certain phone call plan pays a fee of $25

Question

A customer using a certain phone call plan pays a fee of $25 a month, and then recieves a 40% discount on regular charges for all phone calls to country X. If calls to country X are regularly charged at $1.60 for the first 3 minutes and $0.80 for every additional minute thereafter. What is the maximum the customer could have saved over the regular charges, for 1 hr of calls he made to country X during a particular month.

1) 8.75
2) 12.00
3) 13.40
4) 17.40
5) 24.40


pls post ur reasons for the answers...not just answers!

HongHu · Answer

Regular: 
If it's one 60 minutes call: S1=1.6*3+0.8*57=50.4
If it's 20 3 minutes call: S2=1.6*3*20=96
Plan
40%*S1-25<0
40%*S2-25=13.4

(3)

MA · Answer

the problem is pretty unclear and vauge. however, 
40% of  =18.88, which is not the answer option. there must be some hidden explanations or assumptions.

halahpeno · Answer

The one thing I'm having trouble with here is: does $1.60 for the first three minutes mean $1.60 PER MINUTE or $1.60 PER 3 MINUTES?

I can understand how you solved HongHu, but I also arrive at $18.88 as the 40% discount, which would mean that the peson doesn't save anything but loses money instead.

Is this just due to poor grammar on the part of GMAC? :?

HongHu · Answer

You are right, the question is not clear whether it is 1.6 per minute or 1.6 for three minutes. From the answer I suppose my understanding is correct, but I agree that it is definitely a bad worded question.

hs20400 · Answer

I believe the question does imply 1.60 for the first 3 minutes, But HongHu's answer is still correct because of the following:
Regular: 
If it's one 60 minutes call: S1=1.6*3+0.8*57=50.4 
If it's  60  1 minutes call: S2=1.6* 60 =96 
Plan 
40%*S1-25<0 
40%*S2-25=13.4

So thats why C. 
Cheers,
hs

MA · Answer

the problem is poorly worded. maximum saving? or maximum discount?

if it is maximum savings, you can make only if you make a 60 minuets call because that costs least. saving means doing the same job at least cost not making the maximum expense .........cus this is business.

if it is maximum, discount, oh yes it is 60 one minuet calls.

FN · Answer

OA is 13.40...and I made the question easier, one of the answer option was 18.88....which is wrong...HongHu...got the right concept...in order for the maximum discount to kick in the bill must be the highest, it can be highest when you make 1 minute 60 calls...the bill would be $96+$25.

This and other weird worded questions are from Kaplan Cats...especially when i am scoring in the 700+ range..I dont know if we are to see such questions in the real GMAT when you are scoring in 700+ range!

A customer using a certain phone call plan pays a fee of $25

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