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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote During the four years that Mrs. Lopez owned her car, she This topic has 1 expert reply and 1 member reply Top Member During the four years that Mrs. Lopez owned her car, she Timer 00:00 Your Answer A B C D E Global Stats Difficult During the four years that Mrs. Lopez owned her car, she found that her total car expenses were$18,000. Fuel and maintenance costs accounted for 1/3 of the total and depreciation accounted for 3/5 of the remainder. The cost of insurance was 3 times the cost of financing, and together these two costs accounted for 1/5 of the total. If the only other expenses were taxes and license fees, then the cost of financing was how much more or less than the cost of taxes and license fees?

(A) $1,500 more (B)$1,200 more

(C) $100 less (D)$300 less

(E) $1,500 less OA D Source: Official Guide GMAT/MBA Expert Elite Legendary Member Joined 23 Jun 2013 Posted: 10197 messages Followed by: 496 members Upvotes: 2867 GMAT Score: 800 Top Reply Hi All, While this question IS wordy, the math behind it is just arithmetic. If you break the prompt into 'pieces', then the work shouldn't be too difficult. The first two sentences tell us that the total car expenses were$18,000, fuel and maintenance costs accounted for 1/3 of THAT total and depreciation accounted for 3/5 of the REMAINDER.

TOTAL = $18,000 Fuel/Maint. = (1/3)($18,000) = $6,000 Remainder =$18,000 - $6,000 =$12,000

Depreciation = (3/5)($12,000) =$7,200

Next, we're told that
Insurance = 3(Financing)
Insurance + Financing = (1/5)($18,000) Here, we have a 'system' of equations (2 variables and 2 unique equations), so we can solve for both variables... Insurance + Financing =$3,600
3(Financing) + Financing = $3,600 4(Financing) =$3,600
Financing = $900 Insurance +$900 = $3,600 Insurance =$2,700

At this point, we have....
Total = $18,000 Fuel/Maint. = (1/3)($18,000) = $6,000 Depreciation = (3/5)($12,000) = $7,200 Financing =$900
Insurance = $2,700$6,000 + $7,200 +$900 + $2,700 =$16,800

This leaves $1,200 for the remaining costs, which we're told are the Taxes and Licensing Fees Taxes&Licensing =$1,200

The question asks how much more/less the Financing cost was compared to the Taxes&Licensing....

$900 -$1,200 = - $300 =$300 LESS

GMAT assassins aren't born, they're made,
Rich

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Contact Rich at Rich.C@empowergmat.com

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Fuel & Maintenance = 1/3
depreciation = 3/5 of the rest = 3/5*2/3 = 2/5
Insurance = 3 * Financing
Insurance + Finance = 1/5

Let Taxes & License = x

so compute for x

1/3 + 2/5 + 1/5 + x = 1
x= 1/15

Amount of x = 1/15*18000 = 1200 -- (1)

Now I + F = 1/5*18000
but I = 3F
so 4F = 1/5*18000
F= 900 -- (2)

Ans is (2) - (1)...i.e. 300 less

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