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Reggie purchased a car costing $8,700. As a down payment he

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by swerve » Mon Nov 04, 2019 6:50 am
Reggie purchased a car costing $8,700. As a down payment, he used a $2,300 insurance settlement and an amount from his savings equal to 15 percent of the difference between the cost of the car and the insurance settlement. If he borrowed the rest of the money needed to purchase the car, how much did he borrow?

A. $6,400
B. $6,055
C. $5,440
D. $5,095
E. $3,360

The OA is C

Source: Official Guide
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by Brent@GMATPrepNow » Mon Nov 04, 2019 7:00 am
swerve wrote:Reggie purchased a car costing $8,700. As a down payment, he used a $2,300 insurance settlement and an amount from his savings equal to 15 percent of the difference between the cost of the car and the insurance settlement. If he borrowed the rest of the money needed to purchase the car, how much did he borrow?

A. $6,400
B. $6,055
C. $5,440
D. $5,095
E. $3,360
Reggie purchased a car costing $8,700. As a down payment, he used a $2,300 insurance settlement and an amount from his savings equal to 15 percent of the difference between the cost of the car and the insurance settlement.
The difference between the car's cost and the settlement = $8,700 - $2,300 = $6400
15% of $6400 = $960

So, amount Reggie has paid so far = $2,300 + $960 = $3260

If Reggie borrowed the rest of the money needed to purchase the car, how much did he borrow?
Amount borrowed = (total cost of car) - (total amount paid so far)
= $8700 - $3260 = $5440

Answer: C

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
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by Scott@TargetTestPrep » Wed Nov 06, 2019 7:13 pm
swerve wrote:Reggie purchased a car costing $8,700. As a down payment, he used a $2,300 insurance settlement and an amount from his savings equal to 15 percent of the difference between the cost of the car and the insurance settlement. If he borrowed the rest of the money needed to purchase the car, how much did he borrow?

A. $6,400
B. $6,055
C. $5,440
D. $5,095
E. $3,360

The OA is C

Source: Official Guide
The difference between the cost of the car and the insurance settlement is:

8,700 - 2,300 = $6,400

Thus, the amount he took from his savings is 0.15 x 6,400 = $960.

So he had to borrow 6,400 - 960 = $5,440 to pay for the remaining cost of the car.

Answer: C

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