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A customer using a certain telephone calling plan pays a fee

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by airan » Sat Jul 12, 2008 11:20 pm
A customer using a certain telephone 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 teh calls to country A are regularly charged at $1.6 per minute for first 3 minutes and $0.8 per minute thereafter, what is the maximum the customer could have saved over regular prices if he was charged for 1 hr of calls made to coutry A in a certain month.


OA is [spoiler]$13.4[/spoiler]
Last edited by airan on Mon Jul 14, 2008 12:51 am, edited 1 time in total.
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by reachac » Sat Jul 12, 2008 11:45 pm
IS THE ANS 13.4$?
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by vivekverma » Sun Jul 13, 2008 1:12 am
Ans. 13.4
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by sudhir3127 » Sun Jul 13, 2008 5:37 am
Assuming that the customer speaks only 1 minute every time ...
the maximum amount he has to pay is

1.6 * 60 mints = 96

40% discount = 38.4

initial payment of 25 $

there fore the max he can save is 38.4 - 25 = 13.4

let me know if i am correct.
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by raunekk » Sun Jul 13, 2008 9:54 am
hi sudhir3127 ,

then what are we suppose to do of $0.8/min???
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by sudhir3127 » Sun Jul 13, 2008 10:02 am
as i said we assume he speaks only for one minute every time.

the max he will have to pay is 96.( what is the maximum the customer could have saved ..he would save more only if the bill is highest)

my understanding correct me if i am wrong
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by reachac » Sun Jul 13, 2008 10:04 am
Well precisely "nothing" I suppose ranuekk :)....I think 13.4 could be the ans coz we have to find the maximum saved, and for that we need get the maximum payed first.
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by raunekk » Sun Jul 13, 2008 10:17 am
Ahh..got it!!..i was gettin 10.4...which was eitherways wrong..coz i took 1 hour as just one call...

thanks

sudhir3127, reachac
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by sumitkhurana » Sat Feb 21, 2009 11:50 am
Hi folks,

The max he can spend is 96, and the savings is on regular calls i.e. 40 % of 96 = 38.4 --

Why are we subtracting further 25, which is the initial payment, from this figure of 38.4.

Kindly clarify.

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by sumitkhurana » Sat Feb 21, 2009 12:00 pm
Take it back. Was taking the initial payment and the discount in isolation. Realized just now that it was because of these 25 $ that he started getting 40 % off.
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by vodafone » Sun Oct 11, 2009 5:05 am
In the above mentioned question, to maximize the discount, we assume that the customer speaks only for one minute every time, totaling 60 mins.

But, what if his calls last less than 1 min ? In which case, the max he will have to pay will go beyond $96. Theoretically, max he will have to pay will be when each call lasts for 1 sec. ie: $96x60.

I think the question should clearly state what is the minimum possible time the customer can speak in a single call. What say, guys??
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by vscid » Sat Apr 17, 2010 2:05 pm
airan wrote:A customer using a certain telephone 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 the calls to country A are regularly charged at $1.6 per minute for first 3 minutes and $0.8 per minute thereafter, what is the maximum the customer could have saved over regular prices if he was charged for 1 hr of calls made to country A in a certain month.


OA is [spoiler]$13.4[/spoiler]
When calls are made at a regular charge of $1.6 per minute for the entire 60 minutes, do we assume that the customer would not pay the $25 fee?
Argh..this wording confuses me :x
The GMAT is indeed adaptable. Whenever I answer RC, it proficiently 'adapts' itself to mark my 'right' answer 'wrong'.
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