A charity raises money: Company gives $3 per $1 up to $9,000 and $1 per $1 thereafter. How much must the charity raise to reach $65,000 total?

Rationale

The charity must raise $0 to reach a total of $65,000.

In this scenario, the charity receives $3 for every $1 raised up to $9,000, which equates to a maximum contribution of $27,000. After reaching this limit, the charity receives $1 for every additional dollar raised. To achieve a total of $65,000, the charity does not need to raise any additional funds beyond the $9,000, as the contributions from the company will cover the remaining amount.

A ($38) YOUR ANSWER

If the charity raises $38, it would receive $3 for each of those dollars up to $9,000, totaling $114. However, this does not contribute meaningfully to reaching the target of $65,000, as they would still be far from that amount.

B (0) CORRECT

Raising $0 means the charity does not need to raise any additional funds beyond the initial $9,000 since the company will still provide $27,000 in contributions. Thus, the total of $27,000 plus the $9,000 raised equals $36,000, and they would not reach the target of $65,000.

C ($40) YOUR ANSWER

Raising $40 would yield only $120 from the company’s matching program, which would still leave a significant gap to the target of $65,000. This amount is insufficient to reach the required total.

D (0) YOUR ANSWER

This option is a repetition and similarly indicates that raising $0 would mean no additional funds are raised, which does not help in achieving the target.

E ($42) YOUR ANSWER

If the charity raises $42, it would receive $126 from the company. This amount is still inadequate for reaching the goal of $65,000.

G ($49) YOUR ANSWER

Raising $49 would result in $147 from the matching funds, which again falls short of the total needed to reach $65,000.

Conclusion

To meet a total of $65,000, the charity effectively does not need to raise any additional funds beyond the initial $9,000, as the company’s contributions already cover a significant portion of that total. Therefore, raising $0 is the most accurate answer, emphasizing the charity's financial leverage through the initial contributions.

A charity raises money: Company gives $3 per $1 up to $9,000 and $1 per $1 thereafter. How much must the charity raise to reach $65,000 total?

The charity must raise $0 to reach a total of $65,000.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test