16. A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?
(A) 6%
(B) 12%
(C) 14%
(D) 16%
(E) 20%
answer is d
can anyone explain?
Target Test Prep is 20% off right now!
Use code FLASH20
Available with Beat the GMAT members only code
MORE DETAILS
1000 ps section#3- 16
This topic has expert replies
-
wizardofwashington
- Senior | Next Rank: 100 Posts
- Posts: 71
- Joined: Wed Aug 22, 2007 12:29 pm
- Location: USA
- Thanked: 12 times
- Followed by:1 members
Amount borrowed = 400-75 = 325
Total Paid by installments = 23x16 + 9= 368+9 = 377
Interest Paid = Total Paid - Amount Borrowed = 377-325 = 52
Now, the amount of interest paid compared to the amount borrowed = 52/325=.16 = 16%
HENCE, THE ANSWER IS "D"
Total Paid by installments = 23x16 + 9= 368+9 = 377
Interest Paid = Total Paid - Amount Borrowed = 377-325 = 52
Now, the amount of interest paid compared to the amount borrowed = 52/325=.16 = 16%
HENCE, THE ANSWER IS "D"
A falling tree resounds... but a forest grows in silence...
