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A certain disability plan pays monthly benefits of 60 percen
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04 Feb 2020, 07:07
04 Feb 2020, 07:07
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Question Stats:
66% (01:02) correct
33% (01:05) wrong based on 3 sessions
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A certain disability plan pays monthly benefits of 60 percent of the first $2,000 of monthly salary plus 40 percent of any portion in excess of $2,000 —the total monthly benefit not to exceed $2,500. What is the smallest monthly salary that will yield the maximum monthly benefit under this plan?
(A) $5,750
(B) $5,250
(C) $4,500
(D) $3,250
(E) $2,200
(A) $5,750
(B) $5,250
(C) $4,500
(D) $3,250
(E) $2,200
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Re: A certain disability plan pays monthly benefits of 60 percen
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04 Feb 2020, 07:52
04 Feb 2020, 07:52
1
Asif123 wrote:
A certain disability plan pays monthly benefits of 60 percent of the first $2,000 of monthly salary plus 40 percent of any portion in excess of $2,000 —the total monthly benefit not to exceed $2,500. What is the smallest monthly salary that will yield the maximum monthly benefit under this plan?
(A) $5,750
(B) $5,250
(C) $4,500
(D) $3,250
(E) $2,200
(A) $5,750
(B) $5,250
(C) $4,500
(D) $3,250
(E) $2,200
Let x = monthly salary
So, x - $2000 = the amount that's in excess of $2000
So, we can write: monthly benefit = (60% of $2000) + (40% of x - 2000)
The maximum total monthly benefit is $2,500
We get: $2500 = (60% of $2000) + (40% of x - $2000)
Simplify: 2500 = (1200) + 0.4(x - 2000)
Simplify: 2500 = 1200 + 0.4x - 800
Simplify: 2500 = 400 + 0.4x
Subtract 400 from both sides: 2100 = 0.4x
Divide both sides by 0.4 to get: 2100/0.4 = x
Simplify: x = 5250
Answer: B
Cheers,
Brent
gmatclubot
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04 Feb 2020, 07:52
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