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By the end of each year, a certain credit card company pays a bonus

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By the end of each year, a certain credit card company pays a bonus [#permalink] New post   08 Sep 2021, 06:11
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By the end of each year, a certain credit card company pays a bonus to each of its customer based on the amount, up to $10,000, that he/she was charged throughout the year.

Quantity A
Quantity B
Maximum annual bonus (in $)
$200


A. Quantity A is greater
B. Quantity B is greater
C. The two quantities are equal
D. The relationship cannot be determined from the information given
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B
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Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   11 Sep 2021, 21:41
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arjunbir wrote:
KarunMendiratta Sir can you please explain this question.
Thank you


By the end of each year, a certain credit card company pays a bonus to each of its customer based on the amount, up to $10,000, that he/she was charged throughout the year.

The person will get a bonus of 0.5% upto $1,000, so bonus received is (0.005)($1,000) = $5
Now, he/she will also receive 1% bonus on $3,000 - $1,000 = $2,000, so the bonus is (0.01)($2,000) = $20

Similarly the bonuses are;
(0.015)($6,000 - $3,000) = $45
(0.02)($10,000 - $6,000) = $80

Total bonus = $150

Col. A: $150
Col. B: $200

Hence, option B
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Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   08 Sep 2021, 10:16
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Total paid is (1000 * 0.5%) + (2000 * 1.0%) + (3000 * 1.5%) + (4000 * 2.0%) = 150$
So answer is B
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Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   11 Sep 2021, 15:00
KarunMendiratta Sir can you please explain this question.
Thank you
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Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   12 Sep 2021, 03:59
KarunMendiratta wrote:
arjunbir wrote:
KarunMendiratta Sir can you please explain this question.
Thank you


By the end of each year, a certain credit card company pays a bonus to each of its customer based on the amount, up to $10,000, that he/she was charged throughout the year.

The person will get a bonus of 0.5% upto $1,000, so bonus received is (0.005)($1,000) = $5
Now, he/she will also receive 1% bonus on $3,000 - $1,000 = $2,000, so the bonus is (0.01)($2,000) = $20

Similarly the bonuses are;
(0.015)($6,000 - $3,000) = $45
(0.02)($10,000 - $6,000) = $80

Total bonus = $150

Col. A: $150
Col. B: $200

Hence, option B


I didn't understood why we have to find the difference from the amount charged column (e.g.$6,000 - $3,000 from the third row)?
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Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   12 Sep 2021, 04:27
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koala wrote:
KarunMendiratta wrote:
arjunbir wrote:
KarunMendiratta Sir can you please explain this question.
Thank you


By the end of each year, a certain credit card company pays a bonus to each of its customer based on the amount, up to $10,000, that he/she was charged throughout the year.

The person will get a bonus of 0.5% upto $1,000, so bonus received is (0.005)($1,000) = $5
Now, he/she will also receive 1% bonus on $3,000 - $1,000 = $2,000, so the bonus is (0.01)($2,000) = $20

Similarly the bonuses are;
(0.015)($6,000 - $3,000) = $45
(0.02)($10,000 - $6,000) = $80

Total bonus = $150

Col. A: $150
Col. B: $200

Hence, option B


I didn't understood why we have to find the difference from the amount charged column (e.g.$6,000 - $3,000 from the third row)?


Because the person has spent $10,000 in total and 2% bonus will be given for $6,000 - $10,000 i.e. $4,000 not the whole amount.
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Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   25 Oct 2023, 11:41
KarunMendiratta wrote:
arjunbir wrote:
KarunMendiratta Sir can you please explain this question.
Thank you


By the end of each year, a certain credit card company pays a bonus to each of its customer based on the amount, up to $10,000, that he/she was charged throughout the year.

The person will get a bonus of 0.5% upto $1,000, so bonus received is (0.005)($1,000) = $5
Now, he/she will also receive 1% bonus on $3,000 - $1,000 = $2,000, so the bonus is (0.01)($2,000) = $20

Similarly the bonuses are;
(0.015)($6,000 - $3,000) = $45
(0.02)($10,000 - $6,000) = $80

Total bonus = $150

Col. A: $150
Col. B: $200

Hence, option B


Sir, why are we taking this method? I think the table is giving brackets of the % bonus based on what was charged. So, if someone falls within the first bracket, they will only get 0.5% bonus and so on. So, max bonus one can get is if they are charged $10,000 and 2% of $10,000 = $200. Answer should be C, then. Please correct me if I am wrong, KarunMendiratta and Carcass sirs
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Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   25 Oct 2023, 23:49
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he/She taks an incremental bonus after a certain threshold

The person will get a bonus of 0.5% upto $1,000, so bonus received is (0.005)($1,000) = $5
Now, he/she will also receive 1% bonus on $3,000 - $1,000 = $2,000, so the bonus is (0.01)($2,000) = $20

This is correct. Whar is your doubt sir ?
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Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   07 Nov 2024, 15:33
Hello from the GRE Prep Club BumpBot!

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Re: By the end of each year, a certain credit card company pays a bonus [#permalink]
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