A museum offers a 2-hour guided group tour

A museum offers a 2-hour guided group tour. For groups with fewer than 25 people the cost is $9.25 per person; for groups with 25 people or more the cost is $8.50 per person. The 27 people in the 9:00 a.m. tour group each paid $9.25 in advance. What is the total refund that the museum owes the 9:00 a.m. group?

1. $12.50
2. $13.00
3. $18.75
4. $20.25
5. $25.00

Answer

The correct answer is D.

The group of 27 people paid a total of $249.75 (27 × $9.25 per person) in advance.

Because the group consisted of more than 25 people, the actual cost was $229.50 ($27 × $8.50 per person). The refund is the difference between the amount paid and the actual cost, which is $249.75 - $229.50 = $20.25.

Alternatively, per person refund is $9.25 - $8.50 = $0.75.

So, for 27 people, total refund = $0.75 x 27

= $20.25