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GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1055
GPA: 3.39
At the end of each year, a certain credit card company pays a bonus to
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31 Mar 2022, 09:45
31 Mar 2022, 09:45
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At the end of each year, a certain credit card company pays a bonus to each of its credit card holders based on the amount, up to $10,000, that the cardholder charged throughout the year. A 0.5 percent bonus is paid on the first $1,000 charged, a 1.0 percent bonus is paid on the next $2,000 charged and so on, as indicated in the table above. What is the maximum annual bonus, in dollars?
A. $100
B. $150
C. $200
D. $250
E. $500
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1055
GPA: 3.39
Re: At the end of each year, a certain credit card company pays a bonus to
[#permalink]
08 Apr 2022, 03:29
08 Apr 2022, 03:29
1
Expert Reply
Explanation
Break the percentages instead of the amount charged for quick calculation.
0.5% is earned on the entire 10k, extra 0.5% is earned on the 9k (after 1k), another 0.5% is earned on 7k (from 3k to 10k) and another 0.5% is earned on last 4k.
So total bonus = 0.5% of (10k + 9k + 7k + 4k) = 0.5% of 30,000 = $150
(Note that 1% of 30,000 will be 300 so 0.5% will be 150)
Answer (B)
Break the percentages instead of the amount charged for quick calculation.
0.5% is earned on the entire 10k, extra 0.5% is earned on the 9k (after 1k), another 0.5% is earned on 7k (from 3k to 10k) and another 0.5% is earned on last 4k.
So total bonus = 0.5% of (10k + 9k + 7k + 4k) = 0.5% of 30,000 = $150
(Note that 1% of 30,000 will be 300 so 0.5% will be 150)
Answer (B)
gmatclubot
Re: At the end of each year, a certain credit card company pays a bonus to [#permalink]
08 Apr 2022, 03:29
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