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Bonus problem

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by VP_Tatiana » Mon Aug 25, 2008 2:15 pm
A person would earn the maximum if they charged at least $10,000.

They would earn:

0.005(1000) + 0.01(2000) + 0.015(3000) + .02(4000) =
5 + 20 + 45 + 80 =
150

Hope that helps!

Tatiana
Tatiana Becker | GMAT Instructor | Veritas Prep
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by gmattester » Tue Aug 26, 2008 6:20 am
Can you plz. help me with details.

He said 1.5% bonus is paid on amount above 3000 , so why are we taking 1.5%(3000).
Also he is saying 2% bonus is paid on amount between 6000 and 10,000, so why are we calculating 2%(4000) when he cannot get bonus of 2% on 4000
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by luisengard » Tue Aug 26, 2008 6:48 am
gmattester wrote:Can you plz. help me with details.

He said 1.5% bonus is paid on amount above 3000 , so why are we taking 1.5%(3000).
Also he is saying 2% bonus is paid on amount between 6000 and 10,000, so why are we calculating 2%(4000) when he cannot get bonus of 2% on 4000
Each bonus appies only to their corresponding segment of cash. We apply 1.5%*3000 because there are only $3000 from $3000 to $6000. We calculate 2% of $4000 because there are only $4k between $6k and $10k

I hope this helps

And hello to everyone... this is my first post :)
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