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Problem Solving (PS) | Re: Last year a credit card company gave each of its cardholders a rebate

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NoviceBoy wrote:

Last year a credit card company gave each of its cardholders a rebate on the amount charged during the year. The rebate was 1 percent of the portion of the amount charged in excess of $2,000 but less than or equal to $5,000, and 2 percent of the portion of the amount charged in excess of $5,000. If a cardholder received a total rebate equal to 1.3 percent of the amount charged, how much did the cardholder charge on the card?

A) $6,000
B) $7,000
C) $8,000
D) $9,000
E)$10,000

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You can use weighted averages too. 1.3% is the rebate on the entire amount, including the first $2000.

First $2000, 0% rebate
Next $3000 (from 2000 to 5000), 1% rebate
Next $x (5000+), 2%rebate

\( 1.3 =\frac{ 0*2 + 1*3 +2*x}{(2+3+x)}\)
x = 5

Hence the charge was 5000 above $5000 i.e. a total of$10,000

Answer(E)

Weighted AveragesVideo: 
https://www.youtube.com/watch?v=_GOAU7moZ2Q
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Statistics : Posted by KarishmaB • on 31 Oct 2023, 05:49 • Replies 7 • Views 3171



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