BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

percentage/ratio rates!

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Junior | Next Rank: 30 Posts
Posts: 17
Joined: Mon Aug 08, 2011 11:40 pm

percentage/ratio rates!

by fizzanasir » Fri Oct 21, 2011 12:04 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

Reggie purchased a car costing $8700. As a down payment he used a $2300 insurance settlement and an amount from his savings equal to 15% 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


please help me out with the above problem.
thank you!
Top
Source: — Problem Solving |
User avatar
Legendary Member
Posts: 588
Joined: Sun Oct 16, 2011 9:42 am
Location: New Delhi, India
Thanked: 130 times
Followed by:9 members
GMAT Score:720

by rijul007 » Fri Oct 21, 2011 12:10 am
Option c


Total cost = $8700
Insurance settlement = $2300
difference = $6400
payment from saving = 15% of 6400 = $960

remaining money that he borrowed = $(6400-960) = $5440
Top
Legendary Member
Posts: 966
Joined: Sat Jan 02, 2010 8:06 am
Thanked: 230 times
Followed by:21 members

by shankar.ashwin » Fri Oct 21, 2011 12:15 am
Now total cost to be paid = 8700.

Cost from insurance = 2300.

Therefore, remaining amount to be paid = 8700-2300 = 6400.

But he has paid 15% of this using his savings, so he has to borrow 85% of 6400.

0.85*6400=5440. C IMO
Top
User avatar
Community Manager
Posts: 1060
Joined: Fri May 13, 2011 6:46 am
Location: Utrecht, The Netherlands
Thanked: 318 times
Followed by:52 members

by neelgandham » Fri Oct 21, 2011 12:48 am
Say, B = Money he borrowed, From the question we get

8700 (Cost of the car) = 2300(Insurance settlement) + ((15/100)*(8700-2300))(15 percent of difference between the cost of the car and the insurance settlement) + B

=> 8700-2300 = ((15/100)*(8700-2300))+B

=> B = (1-(15/100))*(8700-2300)

=> B = 5440, option C
Anil Gandham
Welcome to BEATtheGMAT | Photography | Getting Started | BTG Community rules | MBA Watch
Check out GMAT Prep Now's online course at https://www.gmatprepnow.com/
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8085
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

by Scott@TargetTestPrep » Wed Oct 10, 2018 5:46 pm
fizzanasir wrote:Reggie purchased a car costing $8700. As a down payment he used a $2300 insurance settlement and an amount from his savings equal to 15% 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 difference between the cost of the car and the insurance settlement is:

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

Thus, the amount 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

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

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

ImageImage
Top
Post new topic Post Reply
• Page 1 of 1