A cloud storage company offers an unlimited storage plan for $120 per month. Alternatively, customers can choose a pay-per-use plan...
GMAT Algebra : (Alg) Questions
A cloud storage company offers an unlimited storage plan for \(\$120\) per month. Alternatively, customers can choose a pay-per-use plan with rates of \(\$2.00\) per GB for the first \(20\) GB, \(\$3.00\) per GB for the next \(20\) GB (\(21\text{-}40\) GB), and \(\$5.00\) per GB for any storage beyond \(40\) GB. What is the minimum number of gigabytes a customer would need to store per month for the unlimited plan to cost less than the pay-per-use option?
1. TRANSLATE the pricing information
- Unlimited plan: \(\$120\) per month
- Pay-per-use plan:
- First 20 GB: \(\$2.00/GB\)
- Next 20 GB (21-40 GB): \(\$3.00/GB\)
- Beyond 40 GB: \(\$5.00/GB\)
- Goal: Find minimum GB where unlimited costs LESS than pay-per-use
2. INFER the approach strategy
- Since we're looking for when unlimited becomes cheaper, we need to:
- Calculate pay-per-use costs at different usage levels
- Find where pay-per-use exceeds \(\$120\)
- Start by calculating the "breakpoints" in the pricing tiers
3. SIMPLIFY the piecewise calculation
Calculate cumulative costs:
- First 20 GB: \(\mathrm{20 \times \$2.00 = \$40}\)
- Next 20 GB: \(\mathrm{20 \times \$3.00 = \$60}\)
- Total for first 40 GB: \(\mathrm{\$40 + \$60 = \$100}\)
Since \(\mathrm{\$100 \lt \$120}\), we need to go beyond 40 GB.
4. TRANSLATE the general cost formula
For usage beyond 40 GB:
- Base cost for first 40 GB: \(\$100\)
- Additional cost per GB: \(\$5.00\)
- Total cost for n GB (where n > 40): \(\mathrm{\$100 + \$5.00(n - 40)}\)
5. INFER the inequality setup
We want unlimited (\(\$120\)) to cost LESS than pay-per-use:
\(\mathrm{\$120 \lt \$100 + \$5.00(n - 40)}\)
6. SIMPLIFY the inequality
\(\mathrm{\$120 \lt \$100 + \$5.00(n - 40)}\)
\(\mathrm{\$20 \lt \$5.00(n - 40)}\)
\(\mathrm{4 \lt n - 40}\)
\(\mathrm{n \gt 44}\)
7. APPLY CONSTRAINTS to find the minimum integer
Since we need \(\mathrm{n \gt 44}\) and the answer must be a whole number of gigabytes:
- At \(\mathrm{n = 44}\): Pay-per-use = \(\mathrm{\$100 + \$5.00(4) = \$120}\) (equal, not less)
- At \(\mathrm{n = 45}\): Pay-per-use = \(\mathrm{\$100 + \$5.00(5) = \$125 \gt \$120}\) ✓
Answer: 45
Why Students Usually Falter on This Problem
Most Common Error Path:
Weak TRANSLATE skill: Setting up the wrong inequality direction, making it \(\mathrm{\$120 \gt \text{pay-per-use}}\) instead of \(\mathrm{\$120 \lt \text{pay-per-use}}\).
Students often think "I want to find when unlimited is better" and incorrectly write \(\mathrm{\$120 \gt \$100 + \$5.00(n - 40)}\). This gives them \(\mathrm{n \gt 40}\), leading them to think 41 GB is the answer. Since 41 isn't among typical answer choices, this leads to confusion and guessing.
Second Most Common Error:
Poor SIMPLIFY execution: Making arithmetic errors in the piecewise calculation, especially forgetting that the middle tier is only for GB 21-40 (20 GB total), not 40 GB.
Some students calculate: First 20 GB = \(\$40\), next 40 GB = \(\$120\), getting \(\$160\) total for 60 GB. This makes them think much higher usage is needed, leading to incorrect answer selection.
The Bottom Line:
This problem challenges students to correctly interpret "less than" in the context of finding a minimum threshold, while accurately handling piecewise pricing calculations.