Use the information below to answer the following three questions.
Payment Policy
Payment for subscriptions is billed one month in advance. First month's payments are pro-rated for the amount due up until the 15th of the month plus the next month's bill amount. All monthly payments are due by the 15th of each month. Payments received after the 20th of the month will result in a late fee of $20.00. The late fee may be waived one time per year.


1) A customer calls and has questions about the bill for their first month's subscription. They want to know why the monthly rate is $45.00, but the bill is for $60.00. What is the most likely reason for the bill being this amount?

a. The customer owes a late fee in addition to the subscription amount.
b. There was a mistake and the customer was over-charged.
c. The subscription began about 10 days before the 15th of the month.
d. The customer's account was upgraded to the next subscription level.


2) A customer calls and says that they are upset because they just received their bill and it is for two months service plus a $20 late fee. They have never had a late payment before. They explain that they moved last month and never received their bill. What would you tell them?

a. They need to pay the bill or their service will be discontinued.
b. You will get a supervisor to speak with them.
c. They just need to pay this month's bill to be current.
d. You can waive the late fee this time if they pay the balance.


3) If a customer's bill is $45.00 for the first month their subscription starts and $30.00 each month after that, which date did their service most likely start?

a. The 1st of the month
b. The 10th of the month
c. The 15th of the month
d. The 20th of the month

1st off i have no idea what pro-rated means so i think im sol, hence id appreciate any1s help on the matter.
would be willing 2 donate some fg to someone who can give me the answer and possibly tell me what pro-rate is, Thanks

edit/ I answered B/D/B

This post was edited by whodisiz on Nov 21 2014 05:10pm

if an apt complex charged 800$/month for rent and you move in jan 23, do you really wanna pay 800$ for the month of january? no, you only wanna pay rent for the week you're there. that's prorating.

I don't know If I understood this question correctly but I will try.

1)

If I understood this statement "First month's payments are pro-rated for the amount due up until the 15th of the month plus the next month's bill amount", we probably will have this:

montly rate: $45
maximum value due till day 15th: $22,5

The bill is $60, which means they are paying $45 (second month) + $15 (first month value due till day 15th)

If they have moved in month/01st, the value due would be $22,5 + $45. But they are paying $15 + $45 and not $22,5 + $45. This means they probably have moved in the day 5th (10 days before the 15th).

I can be wrong of course, but I think the correct answer is C)



2)

I choose letter D) because of this: "The late fee may be waived one time per year".



3)

Montly rate: $30
maximum value due till day 15th: $15

Well, I guess they moved in the day 1st, since they are paying $45, which means the maximum value due till day 15th plus the second month ($15 + $30).
A)


I can be wrong, but this is what I've understood of this question. Good luck sir.

1)C
First bill is 60$ yet subscription is 45$ per month thus they were charged 45$ for one month of service and 15$ more which is 1/3 of a months subscription and months are generally 30-31 days this they were charged for an xtra 10 days ontop of one month.

2)D
Customers are allowed 1 waived late fee per month, since the customer never received bill due to moving you can give them a break on the late fee but still want them to pay balance for subscription that was still active.



3)B
30$ per month after first month, since first month is pro rated you pay 45$ for entire month but only the amount at start time for each month after. 30$ is 2/3 of 45$ charge for full month thus they are paying for 2/3 of months bill so they started the subscription 1/3 into the month which is roughly 10 days in before they start.