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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 ##### This topic has 1 expert reply and 1 member reply ### 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

Can some experts show me the best solution in this?

OA D

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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 Can some experts show me the best solution in this? OA D Hi lheiannie07, Let's take a look at your question. Train fares for business trips this year =$7,500
10% increase in train fares business trips next year = 7,500 * 10% = 7500 * 0.1 = $750 Total Train fares for business trips next year =$7,500 + $750 =$8,250

Air fares for business trips this year = $11,200 15% increase in air fares for business trips next year = 11,200 * 15% = 11,200 * 0.15 =$1,680
Total Air fares for business trips next year = $11,200 +$1,680 = $12,880 Total money allotted for next year business trips =$8,250 + $12,880 =$21,130

Therefore, Option D is correct.

Hope it helps.
I am available if you's like any follow up.

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lheiannie07 wrote:
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 Can some experts show me the best solution in this? OA D Calculate 107500+11200=18700 With 10% increase the amount would be 18700x1.1=20570 Additional 5% increase in 11200 is 560 Hence total money he should allot for next year=20570+560=21130 Option D is correct. • Free Practice Test & Review How would you score if you took the GMAT 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 • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

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