GMAT PREP Practice test question

[Guest]

The answer to this question is 150. Can somebody explain?

[StaceyKoprince]

The problem tells us that it will pay a bonus "up to $10,000" so if we want to know the maximum possible bonus, we have to assume the person charged $10,000.

For the first $1,000, the person earns a 0.5% bonus.
1000 = 100%
100 = 10%
10 = 1%
5 = 0.5%
So the person earns $5 for the first $1,000 charged.

For the next $2,000 charged (between $1,000 and $3,000), the person earns a 1% bonus.
200 = 10%
20 = 1%
So the person earns $20 for the next $2,000 charged.

For the next $3,000 charged (between $3,000 and $6,000), the person earns a 1.5% bonus.
300 = 10%
30 = 1%
15 = 0.5%
So the person earns $30 + 15 = $45 for the next $3,000 charged.

For the last $4,000 charged (between $6,000 and $10,000), the person earns a 2% bonus.
400 = 10%
40 = 1%
So the person earns $40 + $40 = $80 for the last $4,000 charged.

For the full $10,000, the person earns 5 + 20 + 45 + 80 = $150.

[Guest]

Thanks Stacey!!

[StaceyKoprince]

You're welcome!

[akhiltibrewal]

i may be wrong but i am not convinced with the answer.
Amount charged between $6000 - $10,000, you have taken as 4000 and multiplied by 2% (percent bonus) to get $80(bonus in dollars).
How can you take $4000 in the range $6000 - $10,000

Please help.

[tim]

i must totally not understand your question. the difference between 6000 and 10000 is 4000, exactly as Stacey said. are you questioning whether 6000 + 4000 = 10000?