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Kaplan CAT - price of telephone call

Expert replies
Source: — Problem Solving |

by allenkt » Sun Apr 29, 2007 6:54 pm
whew...this one had me stumped for a bit. My mistake was assuming the 1 hour all took place in one call. But to save the maximum amount he would have to make 60 calls, each one minute in duration. Granted, this would also be the plan that would spend the most money, but it's also the one that would save the most too.

Since 40% of $1.60 is $0.64, he would save $38.40 (.64 x 60). But then you must subtract the $25 monthly charge which reduces the total savings to a grand total of $13.40.

The correct answer is C, $13.40 (I hope....lol)
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by f2001290 » Mon Apr 30, 2007 6:41 am
I agree with allen on this. Initially, I forgot to substract $25. In GMAT, options always helps us.
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by jayhawk2001 » Mon Apr 30, 2007 9:02 pm
Yes, OA is C.

The key here is to consider that the worst case is not 60 min on 1
call but 60 calls of 1 minute each.
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