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At Walter's Sub Shop, Walter provides a free sub to a customer after the customer buys 4...

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At Walter's Sub Shop, Walter provides a free sub to a customer after the customer buys 4...

by BTGmoderatorLU » Mon Jul 27, 2020 9:31 am

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Source: Economist GMAT

At Walter's Sub Shop, Walter provides a free sub to a customer after the customer buys 4. Customers need to pay a 5% sales tax on all subs, including the free sub. If each sub costs x dollars before tax, then how much will Kevin need to spend to get 10 subs?

A. 8.5x dollars
B. 9.0x dollars
C. 9.5x dollars
D. 10.0x dollars
E. 10.5x dollars

The OA is A
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Re: At Walter's Sub Shop, Walter provides a free sub to a customer after the customer buys 4...

by dashingnightmare » Mon Jul 27, 2020 12:01 pm
For buying 10 subs,
kelvin needs subs 2 set of 5 subs, that is he needs to buy 8 and 2 will be free
now cost for 8 subs=8x
sales tax of 10 subs=10x*5/100=0.5x
Total cost=8x+0.5x=8.5x
Hence A.
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