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credit card

by Chrystelle » Fri Jan 12, 2007 6:59 am
A credit card company has an yearly 'pay back' option on the credit card. For purchases greater than $2000, but less than $5000 they pay back 1% of the portion above $2000, For purchases greater than 5000, they 'pay back' an additional 4% of the portion above $5000. If a customer receives 1.2% of the total purchases he makes for an year, what was his total purchase for the year?
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by harsh.champ » Fri Mar 12, 2010 6:57 am
Chrystelle wrote:A credit card company has an yearly 'pay back' option on the credit card. For purchases greater than $2000, but less than $5000 they pay back 1% of the portion above $2000, For purchases greater than 5000, they 'pay back' an additional 4% of the portion above $5000. If a customer receives 1.2% of the total purchases he makes for an year, what was his total purchase for the year?
Its clear that the purchase is more than 5000.
Let the purchase be x.
0.01(x - 2000) + 0.04(x - 5000) = 0.012x
0.05x -220 = 0.012x
0.038x = 220
x= 220/0.038=22000/3.8
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