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Connie paid a sales tax of 8 percent on her purchase. If the sales tax had been only 5 percent, she would have paid...

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by BTGmoderatorLU » Fri Sep 04, 2020 9:51 am

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Source: GMAT Prep

Connie paid a sales tax of 8 percent on her purchase. If the sales tax had been only 5 percent, she would have paid $12 less in sales tax on her purchase. What was the total amount that Connie paid for her purchase including sales tax?

A. $368
B. $380
C. $400
D. $420
E. $432

The OA is E
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Re: Connie paid a sales tax of 8 percent on her purchase. If the sales tax had been only 5 percent, she would have paid.

by Scott@TargetTestPrep » Wed Sep 09, 2020 1:31 pm
BTGmoderatorLU wrote: ↑
Fri Sep 04, 2020 9:51 am
 Source: GMAT Prep

Connie paid a sales tax of 8 percent on her purchase. If the sales tax had been only 5 percent, she would have paid $12 less in sales tax on her purchase. What was the total amount that Connie paid for her purchase including sales tax?

A. $368
B. $380
C. $400
D. $420
E. $432

The OA is E
Solution:

Let’s let n = the selling price of the item before tax. Thus, the total sales tax with a tax rate of 8 percent would be 0.08n, and the sales tax with a tax rate of 5 percent would be 0.05n. We are given that the difference in the two sales tax amounts is $12. Thus, we can create the equation:

0.08n - 0.05n = 12

0.03n = 12

n = 400

So the total amount paid was 1.08 x 400 = 432 dollars.

Answer: E

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