A reatil appliance store priced a video recorder at 20

Expert replies

Previous Topic Next Topic

AAPL: Moderator; Posts: 2640; Joined: Sun Oct 29, 2017 2:08 pmFollowed by: 2 members

by AAPL » Fri Nov 16, 2018 4:38 am

Timer

00:00

Answers

Stats

Difficulty—

GMAT Paper Tests

A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200. If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?

A. $198
B .$216
C. $220
D. $230
E. $240

OA B.

Like this post

Source: Beat The GMAT — Problem Solving | Fri Nov 16, 2018 4:38 am

GMAT/MBA Expert

Brent@GMATPrepNow: GMAT Instructor; Posts: 16207; Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members; Location: Vancouver, BC; Thanked: 5254 times; GMAT Score:770

by Brent@GMATPrepNow » Fri Nov 16, 2018 7:02 am

AAPL wrote:A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200. If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?

A. $198
B .$216
C. $220
D. $230
E. $240

A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200
20% of $200 = $40
So, the retail price = $200 + $40 = $240

If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?
10% of $240 = $24
So, the discounted price = $240 - $24 = $216

Answer: B

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

Like this post

GMAT/MBA Expert

[email protected]: Elite Legendary Member; Posts: 10392; Joined: Sun Jun 23, 2013 6:38 pmFollowed by: 511 members; Location: Palo Alto, CA; Thanked: 2867 times; GMAT Score:800

by [email protected] » Fri Nov 16, 2018 12:50 pm

Hi All,

We're told that a retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200 and a store employee applied the 10 percent employee discount to the retail price to buy the recorder. We're asked for the total price the employee paid for the recorder. The math behind this question can be done in a couple of different ways. You can actually do just a little math - and use the 'spread' of the answer choices to your advantage.

The 20% markup in the wholesale cost can be referred to as (1.2)
The 10% employee discount can be referred to as (0.9), since the employee is paying 90% of the normal retail price.

Thus, the total price paid for the video recorder would be ($200)(1.2)(0.9)

(1.2)(0.9) = 1.08, meaning that the employee paid 8% more than the retail price. Since 10% of $200 = $20, the employee paid a little less than $220. There's only one answer that fits...

Final Answer: B

GMAT assassins aren't born, they're made,
Rich

Contact Rich at [email protected]

Like this post

swerve: Legendary Member; Posts: 2539; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

by swerve » Sat Nov 17, 2018 10:09 am

So here, basically we are increasing a number first by 20%, and then decreasing it by 10%. So lets say we start with 100.
Increase 100 by 20% = 120
Decrease 120 by 10% = 120-12 = 108

If you start with 100, you end at 108 (overall 8% increase)
If you start with 200 (double of 100), you will end at 216 (double of 108)

Hence B is the correct answer.

Like this post

GMAT/MBA Expert

Scott@TargetTestPrep: GMAT Instructor; Posts: 8149; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Sun Mar 31, 2019 10:48 am

AAPL wrote:GMAT Paper Tests

A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200. If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?

A. $198
B .$216
C. $220
D. $230
E. $240

OA B.

We are given that a retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200, or 1.2 x 200 = $240.

If an employee purchased the item at a 10 percent discount, he paid 0.9 x 240 = $216.

Answer: B

Scott Woodbury-Stewart
Founder and CEO
[email protected]

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

Like this post

Post new topic Post Reply

• Page 1 of 1

GMAT Course Reviews

560 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (560 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review