Last visit was: 17 Nov 2024, 23:44 It is currently 17 Nov 2024, 23:44
Decision Tracker
My Rewards
New comers' posts
New posts
Unanswered

Close

GRE Prep Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GRE score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Go to My Error Log Learn more
Close

Request Expert Reply

Confirm Cancel
PREVIOUS TOPIC
NEXT TOPIC

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

Tags :
Find Similar Topics  About  Add a Tag

Show Tags
Hide Tags

User avatar
D
KarunMendiratta
Retired Moderator
Joined: 16 Apr 2020
Status:Founder & Quant Trainer
Affiliations: Prepster Education
Posts: 1546
Own Kudos [?]: 3223 [6]
Given Kudos: 172
Location: India
WE:Education (Education)
Send PM
By the end of each year, a certain credit card company pays a bonus [#permalink] New post   08 Sep 2021, 06:11
1
5
Bookmarks
00:00

Question Stats:

33% (01:38) correct 66% (01:21) wrong based on 36 sessions

Hide Show timer Statistics

Attachment:
By the end of each year.png
By the end of each year.png [ 6.09 KiB | Viewed 2805 times ]

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
ShowHide Answer
Official Answer
B
Most Helpful Community Reply
User avatar
D
KarunMendiratta
Retired Moderator
Joined: 16 Apr 2020
Status:Founder & Quant Trainer
Affiliations: Prepster Education
Posts: 1546
Own Kudos [?]: 3223 [2]
Given Kudos: 172
Location: India
WE:Education (Education)
Send PM
Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   11 Sep 2021, 21:41
2
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
General Discussion
avatar
B
eskay1981
Manager
Manager
Joined: 02 Sep 2021
Posts: 188
Own Kudos [?]: 186 [1]
Given Kudos: 13
GPA: 3.5
WE:Design (Other)
Send PM
Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   08 Sep 2021, 10:16
1
Total paid is (1000 * 0.5%) + (2000 * 1.0%) + (3000 * 1.5%) + (4000 * 2.0%) = 150$
So answer is B
avatar
B
arjunbir
Intern
Intern
Joined: 15 Feb 2018
Posts: 20
Own Kudos [?]: 4 [0]
Given Kudos: 457
Send PM
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
avatar
B
koala
Manager
Manager
Joined: 18 Jan 2021
Posts: 81
Own Kudos [?]: 20 [0]
Given Kudos: 103
Send PM
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)?
User avatar
D
KarunMendiratta
Retired Moderator
Joined: 16 Apr 2020
Status:Founder & Quant Trainer
Affiliations: Prepster Education
Posts: 1546
Own Kudos [?]: 3223 [2]
Given Kudos: 172
Location: India
WE:Education (Education)
Send PM
Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   12 Sep 2021, 04:27
2
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.
avatar
B
test01
Manager
Manager
Joined: 23 Sep 2023
Posts: 65
Own Kudos [?]: 13 [0]
Given Kudos: 59
Send PM
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
User avatar
D
Carcass
Verbal Expert
Joined: 18 Apr 2015
Posts: 29971
Own Kudos [?]: 36259 [0]
Given Kudos: 25915
Send PM
Re: By the end of each year, a certain credit card company pays a bonus [#permalink] New post   25 Oct 2023, 23:49
Expert Reply
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 ?
User avatar
bumpbot
GRE Prep Club Legend
GRE Prep Club Legend
Joined: 07 Jan 2021
Posts: 5020
Own Kudos [?]: 74 [0]
Given Kudos: 0
Send PM
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!

Thanks to another GRE Prep Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Prep Club for GRE Bot
gmatclubot
Re: By the end of each year, a certain credit card company pays a bonus [#permalink]
07 Nov 2024, 15:33
Moderators:
adewale223
GRE Instructor
78 posts
bronaugust
GRE Forum Moderator
37 posts
BrushMyQuant
Moderator
1111 posts
VibhuAnurag
GRE Instructor
234 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Main navigation

Partners

GRE Resources

www.ets.org/gre | About | Terms and Conditions and Privacy Policy | Prep Club for GRE Rules | Contact