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Question: A mobile data plan charges 3.2 dollars per gigabyte used and then applies a one-time account credit of 1.40...

GMAT Algebra : (Alg) Questions

Source: Prism
Algebra
Linear functions
MEDIUM
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Question:

A mobile data plan charges \(\mathrm{3.2}\) dollars per gigabyte used and then applies a one-time account credit of \(\mathrm{1.40}\) dollars to the total charge. In a billing cycle, a customer uses \(\mathrm{2.5}\) gigabytes. According to this model, what is the total charge, in dollars, after the credit is applied?

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Solution

1. TRANSLATE the problem information

  • Given information:
    • Rate: $3.2 per gigabyte
    • Usage: 2.5 gigabytes
    • Credit: $1.40 (reduces the bill)
  • What this tells us: We need to calculate total cost, then subtract the credit

2. INFER the calculation approach

  • Strategy: This is a two-step problem
  • First calculate the total cost before any credits
  • Then subtract the credit amount from that total

3. SIMPLIFY to find cost before credit

  • Total cost = Rate × Usage
  • Total cost = \(3.2 \times 2.5 = 8.0\) dollars

4. SIMPLIFY to apply the credit

  • Final charge = Cost before credit - Credit amount
  • Final charge = \(8.0 - 1.40 = 6.60\) dollars

Answer: 6.60 (also acceptable: 6.6 or $6.60)




Why Students Usually Falter on This Problem

Most Common Error Path:

Weak TRANSLATE skill: Misunderstanding what "credit" means in billing context

Students might think a credit is an additional charge rather than a reduction. This leads them to calculate: \(8.0 + 1.40 = 9.40\). Since this is a fill-in response, this error leads to an incorrect numerical answer.

Second Most Common Error:

Poor SIMPLIFY execution: Arithmetic errors with decimal operations

Students might make calculation mistakes like:

  • \(3.2 \times 2.5 = 8.5\) (instead of 8.0)
  • \(8.0 - 1.40 = 7.40\) (subtraction error)

These computational errors result in incorrect final answers despite understanding the problem correctly.

The Bottom Line:

This problem tests whether students can correctly interpret billing terminology and execute a straightforward two-step calculation with decimals. Success depends on understanding that credits reduce charges and performing accurate decimal arithmetic.

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