Question

A customer using a certain telephone calling plan pays a fee of $25 per month, and then receives a discount of 40% on the regular charge for all calls made to Country A. If calls to Country A are regularly charged at $1.60 per minute for the first 3 minutes, and $0.80 per minute for each minute thereafter, with no monthly fee, what is the maximum the customer on the calling plan could have saved over regular prices if he was charged for 1 hour of calls made to Country A in a certain month?

A. $8.75
B. $12
C. $13.40
D. $17.40
E. $24.40

Answer 1

Answer: Customer saves = $13.4

Step-by-step explanation:

Here, we are charged $1.60 per minute

Therefore, charges incurred for usage till 60 minutes = 1.60 × 60 = $96.

This is the costs without any discount applied.

Case: If we are provided with discount

Then in this case we'll have to pay the $25 connection fee

Also we have paid 60% of the phone bill= 0.6 × 96 = 57.6.

Therefore, Total = $25 + $57.6 = $82.6

∴ We save = $96 - $82.6 = $13.4

Therefore, the correct option is (c)