A credit card company has a cash back option for their customers which is based on the annual amount...
A credit card company has a cash back option for their customers which is based on the annual amount that they charge on their credit cards. The customer receives 1.5% cash on their first $5000 of purchase, 2.5% on the next $5000 of purchase and a 3% on cash back on portion that exceeds $10,000. If a customer receives a cash back of 2.2% on their total annual charges made on the credit card, then what was the customer's annual charge?
Answer/Solution
$12,500
Steps/Work
The customer receives $75 for the first $5000.
The customer receives $125 for the next $5000.
Let x be the total amount of the customer's annual charge.
$200 + 0.03(x-10,000)=0.022x
0.008x=100
x=12,500
The answer is A.
The customer receives $125 for the next $5000.
Let x be the total amount of the customer's annual charge.
$200 + 0.03(x-10,000)=0.022x
0.008x=100
x=12,500
The answer is A.