percentage

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 112
Joined: Sun Jun 13, 2010 9:20 am
Thanked: 5 times
GMAT Score:640

percentage

by sunilrawat » Sat Jun 11, 2011 4:16 am
The price of lunch for 15 ppl was $207 including a 15% gratuity for service. what was the average price per person excluding the gratuity?

a 11.73
b 12.00
c 13.80
d 14.00
e 15.87

Legendary Member
Posts: 1448
Joined: Tue May 17, 2011 9:55 am
Location: India
Thanked: 375 times
Followed by:53 members

by Frankenstein » Sat Jun 11, 2011 4:37 am
Hi,
Let the avg price per person excluding gratuity be p

So, 15*p*(1+0.15) = 207 => p=12

Hence, B
Cheers!

Things are not what they appear to be... nor are they otherwise

Master | Next Rank: 500 Posts
Posts: 112
Joined: Sun Jun 13, 2010 9:20 am
Thanked: 5 times
GMAT Score:640

by sunilrawat » Sat Jun 11, 2011 4:44 am
if i reduce 15% from 207 and then take the average...wts wrong??

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 3835
Joined: Fri Apr 02, 2010 10:00 pm
Location: Milpitas, CA
Thanked: 1854 times
Followed by:523 members
GMAT Score:770

by Anurag@Gurome » Sat Jun 11, 2011 5:08 am
sunilrawat wrote:The price of lunch for 15 ppl was $207 including a 15% gratuity for service. what was the average price per person excluding the gratuity?
Say the average price per person excluding the gratuity = P
Hence, total price per person excluding the gratuity = 15*P
Therefore, total price per person including the gratuity = 15P + 15% of 15P = (1.15)*15P

Hence, (1.15)*15P = 207
--> P = 207/(15*1.15) = 12

The correct answer is B.
sunilrawat wrote:if i reduce 15% from 207 and then take the average...wts wrong??
The gratuity is on the total price, i.e. 15P. Hence, 15% of $207 is not the gratuity.
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)

Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/

User avatar
Legendary Member
Posts: 1309
Joined: Mon Apr 04, 2011 5:34 am
Location: India
Thanked: 310 times
Followed by:123 members
GMAT Score:750

by cans » Tue Jun 14, 2011 3:28 am
1.15x=207 (for 15 people)
x=20700/115 = 4140/23
price for 1 person= 4140/(23*15) = 828/69 = 12.00
IMO B
If my post helped you- let me know by pushing the thanks button ;)

Contact me about long distance tutoring!
[email protected]

Cans!!