Problem Solving

At the end of each year, a certain credit card company pays a bonus to each of its credit card holders based on the amount, up to $10.000, that the card holder charged throughout the year. A 0.5 percent bonus is paid on the first $1,000 charged, a 1.0 percent bonus is paid on the next $2,000 charged and so on, as indicated in the table above. What is the maximum annual bonus, in dollars?

Table:
Amount charged in dollars Bonus, in percents
0.01-1,000 0.5
1,000.01-3,000 1.0
3,000.01-6,000 1.5
6,000.01-10,000 2.0

A) $ 100
B) $ 150
C) $ 200
D) $ 250
E) $ 500

OA is B

Amount charged in dollars Bonus, in percents
0.01-1,000 0.5
1,000.01-3,000 1.0
3,000.01-6,000 1.5
6,000.01-10,000 2.0

0.5% x (1000-0) + 1% x (3000-1000) + 1.5% x (6000-3000) + 2% x (10000-6000) = $150

B