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sales tax

by gibran » Thu May 15, 2008 8:57 am
Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent, or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?
(1) t1 > t2
(2) p1t1 > p2t2
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient
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Source: — Data Sufficiency |
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by codesnooker » Thu May 15, 2008 10:17 am
Answer is (E).

Lets say P1 = $100, P2 = $200, T1 = $100 and T2 = $0.50 (i.e 50 cents)

Then Total cost will be.

TA = 100 + 100 = $200
TB = 200 + 0.50 = $200.50

Which states that TA <TB> T2, we have already taken in that manner. So INSUFFICIENT.

Now look at the condition 2, P1T1 > P2T2, if we substitute our data over here, we can see that 10000 > 100 (Hence, it satisfy this condition but still TA < TB) Hence INSUFFICIENT.

By taking both statement together also, there is no result. Hence INSUFFICIENT.

Therefore answer is (E)
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