A retail appliance store priced a video recorder at 20

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swerve: Legendary Member; Posts: 2604; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

by swerve » Sat Jul 20, 2019 10:45 am

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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

The OA is B

Source: GMAT Paper Tests

Source: Beat The GMAT — Problem Solving | Sat Jul 20, 2019 10:45 am

Darkknightreturning: Junior | Next Rank: 30 Posts; Posts: 21; Joined: Mon Jul 01, 2019 8:40 am

by Darkknightreturning » Sat Jul 20, 2019 11:19 pm

Price at retail appliance store = 20% above the cost = 1.2*200=$240
Discount on it = 10% of $240 = $24
The amount to be paid = $(240-24) = $216
Answer is B

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8246; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Mon Jul 29, 2019 3:16 pm

swerve 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

The OA is B

Source: GMAT Paper Tests

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

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Brent@GMATPrepNow: GMAT Instructor; Posts: 16206; Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members; Location: Vancouver, BC; Thanked: 5254 times; GMAT Score:770

by Brent@GMATPrepNow » Mon Jul 29, 2019 3:20 pm

swerve 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

The OA is B

Source: GMAT Paper Tests

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

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Brent

Brent Hanneson - Creator of GMATPrepNow.com

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