Source: Official Guide Revised GRE 1st Ed. Part 6; Set 1; #10

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# A certain shipping service charges an insurance

A certain shipping service charges an insurance fee of \$0.75 when shipping any package with contents worth \$25.00 or less and an insurance of \$1.00 when shipping any package with contents worth over \$25.00. If Dan Uses the shipping company to ship three packages with contents worth \$18.25, \$25.00 and \$127.50, respectively, what is the total insurance fee that the company charges Dan to ship the three packages? \$1.75, \$2.25, \$2.50, \$2.75, \$3.00

### 1 Explanation

5

Eric Kuzmenko

Note that two of the packages being shipped have contents that are worth \$25.00 or less. Therefore, each of them has an insurance fee of \$0.75, for a total of \$1.50. The third package has contents worth over \$25.00, and it has an insurance fee of \$1.00. Therefore, the total insurance fee for the three packages is \$1.50 + \$1.00 = \$2.50, and the correct answer is Choice C.

Aug 8, 2014 • Comment