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?

Answer 1

Answer:

The maximum amount saved will be 13.4 dollars

Explanation:

To get the maximum saved, the calls should be for 3 minutes or less.

Without fees: (assuming calls for 3 minutes or less)

1 hours = 60 minutes

60 minutes x 1.60 per minute = 96

Total                                            96

With the fee to receive a discount:

charged to Country A x discount

              96                 x     40%       = 38.4 discount

gross - discount = net

   96  -   38.4     = 57.6 net

+ monthly fee       25

total                      82.6

Amount saved 96 - 82.6 = 13.4