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23 October, 12:54

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?

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  1. 23 October, 14:08
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    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
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