Re: Calling plan

[crackgmat007]

Pls explain.

[ketkoag]

ohh, i did a mistake here . i have to remove the old one..
i'll post the correct solution asap.

[hk]

Pls explain.

The wordings actually confuse me but here is what i get from it:

Monthly charge= $25
Regular Call charge for 1 hr = 1.6 + (0.8*57) [1.6 for first 3 mins and 0.8 for the remaining 57 mins] = $47.2

Now the total charge = 25 + 47.2 = 72.2

Now applying the discount, the discounted call charge for 1 hour =

0.4 (1.6) + 0.4 (0.8) (57) = 0.64 + 0.32 (57) = 18.88

Total charge on applying the discount = 25+18.88 = 43.88

Hence the total savings using the discount = 72.2 - 43.88 = $28.32 (Which is none of the option so i'd just go with the closest option E)

[crackgmat007]

I followed the same thought process, OA is C here. The question is tricky.

[Ian Stewart]

You'll save the most if you're charged the most - that is, if all of your phone calls are short. If each call lasts one minute, then each call will cost $1.60, and the calls will cost $96 in total. When that's reduced by 40%, the savings are 0.4*96 = $38.40. Of course, you pay $25 for this deal, leaving you with a net savings of $38.40 - $25 = $13.40.