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.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?
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
