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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## A company accountant estimates . . . tagged by: Vincen ##### This topic has 1 expert reply and 0 member replies ### Top Member ## A company accountant estimates . . . A company accountant estimates that train fares for business trips next year will increase by 10 percent, and airfares for business trips will increase by 15 percent. This year total train fares for business trips were$7,500, and total airfares for business trips were $11,200. According to the accountant's estimates, if the same business trips will be made next year as this year, how much money should be allotted for train fares and airfares next year? A.$18,700
B. $20,570 C.$20,945
D. $21,130 E.$21,505

The OA is option D.

I don't have this PS question clear. May any expert help me here? I'd be thankful.

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A company accountant estimates that train fares for business trips next year will increase by 10 percent, and airfares for business trips will increase by 15 percent. This year total train fares for business trips were $7,500, and total airfares for business trips were$11,200. According to the accountant's estimates, if the same business trips will be made next year as this year, how much money should be allotted for train fares and airfares next year?

A. $18,700 B.$20,570
C. $20,945 D.$21,130
E. $21,505 The OA is option D. I don't have this PS question clear. May any expert help me here? I'd be thankful. Hi Vincen, Let's take a look at your question. $$\text{Total train fares for business trips}\ =\ 7,500$$ $$\text{Total air fares for business trips}\ =\ 11,200$$ $$\text{10% increase in train fares}\ =\ 7,500\times\frac{10}{100}=750$$ $$\text{Total train fares for business trips after 10% increase}\ =\ 7,500 + 750=8,250$$ $$\text{15% increase in air fares}\ =\ 11,200\times\frac{15}{100}=1,680$$ $$\text{Total air fares for business trips after 15% increase}\ =\ 11,200+1,680=12,880$$ $$\text{Total money that need to be allotted for train and air fares next year}\ =\ 8,250+12,880=21,130$$ Therefore, Option D is correct. Hope it helps. I am available if you'd like any follow up. _________________ GMAT Prep From The Economist We offer 70+ point score improvement money back guarantee. Our average student improves 98 points. Free 7-Day Test Prep with Economist GMAT Tutor - Receive free access to the top-rated GMAT prep course including a 1-on-1 strategy session, 2 full-length tests, and 5 ask-a-tutor messages. Get started now. • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • FREE GMAT Exam Know how you'd score today for$0

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