At a certain supplier, a machine of type A costs $20,000 and a machine of type B costs $50,000. Each machine can be

This topic has expert replies
Moderator
Posts: 6595
Joined: 07 Sep 2017
Followed by:20 members

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

At a certain supplier, a machine of type A costs $20,000 and a machine of type B costs $50,000. Each machine can be purchased by making a 20 percent down payment and repaying the remainder of the cost and the finance charges over a period of time.If the finance charges= 40 percent of the rremainderof the cost, how much less would 2 machines of type A cost than 1 machine of type B?

A. $10,000
B. $11,200
C. $12,000
D. $12,800
E. $13,200


OA E

Source: GMAT Prep

Legendary Member
Posts: 2087
Joined: 29 Oct 2017
Followed by:6 members
BTGmoderatorDC wrote:
Tue Feb 01, 2022 5:12 pm
At a certain supplier, a machine of type A costs $20,000 and a machine of type B costs $50,000. Each machine can be purchased by making a 20 percent down payment and repaying the remainder of the cost and the finance charges over a period of time.If the finance charges= 40 percent of the rremainderof the cost, how much less would 2 machines of type A cost than 1 machine of type B?

A. $10,000
B. $11,200
C. $12,000
D. $12,800
E. $13,200


OA E

Source: GMAT Prep
Cost of 2 Type A machines \(=8000+\dfrac{80}{100} \ast 40000 \ast \dfrac{140}{100}\)

Cost of Type B machines \(=10000 + \dfrac{80}{100}\ast 50000 \ast \dfrac{140}{100}\)

Difference \(=2000+\dfrac{140}{100} \ast \dfrac{180}{100} \ast 10000 = 13200\)

Therefore, E