We're told that she paid 8% tax, but if she had paid 5% tax she would have paid $12 less. In other words, 3% tax = $12.
If we know that 3% of the sales price is $12, we can figure out the actual sales price.
3/100 = 12/x
3x = 1200
x = 400
We might be tempted by (c) at this point, but remember step 4 of the Kaplan method for problem solving - double check the question!
We want the price she paid including sales tax. She paid 8% tax, so the actual answer is:
400 + 8%(400) = 400 + 32 = 432: choose (E).
Note that (d) is in there to punish people who did everything right then added 5% sales tax instead of 8%!
Word Translation: Connie paid 8 percent tax
This topic has expert replies
Source: Beat The GMAT — Problem Solving |
-
Stuart@KaplanGMAT
- GMAT Instructor
- Posts: 3225
- Joined: Tue Jan 08, 2008 2:40 pm
- Location: Toronto
- Thanked: 1710 times
- Followed by:614 members
- GMAT Score:800
Stuart Kovinsky | Kaplan GMAT Faculty | Toronto
Kaplan Exclusive: The Official Test Day Experience | Ready to Take a Free Practice Test? | Kaplan/Beat the GMAT Member Discount
BTG100 for $100 off a full course
-
II
- Master | Next Rank: 500 Posts
- Posts: 400
- Joined: Mon Dec 10, 2007 1:35 pm
- Location: London, UK
- Thanked: 19 times
- GMAT Score:680
Thanks Stuart.Stuart Kovinsky wrote:We're told that she paid 8% tax, but if she had paid 5% tax she would have paid $12 less. In other words, 3% tax = $12.
If we know that 3% of the sales price is $12, we can figure out the actual sales price.
3/100 = 12/x
3x = 1200
x = 400
We might be tempted by (c) at this point, but remember step 4 of the Kaplan method for problem solving - double check the question!
We want the price she paid including sales tax. She paid 8% tax, so the actual answer is:
400 + 8%(400) = 400 + 32 = 432: choose (E).
Note that (d) is in there to punish people who did everything right then added 5% sales tax instead of 8%!
I did it the traditional way. Assign variables and create equations:
p = purchase price
8% tax on purchase = 0.08p
With 5% tax she would pay $12 less in sales tax on purchase. This can be written as: 0.05p = 0.08p - 12
12 = 0.03p
12/0.03 = p
1200/3 = p
400 = p
So purchase price is $400.
8% of $400 is $32 (1% is 4 ... 4*8 = 32)
$400 + $32 = $432 ... answer E.
-
mehravikas
- Legendary Member
- Posts: 1161
- Joined: Mon May 12, 2008 2:52 am
- Location: Sydney
- Thanked: 23 times
- Followed by:1 members
Another way could be -
Total amount exculding sales tax = x
therefore, 8x/100 - 5x/100 = 12
that gives x = 400 and including 8% sales tax the amount is 432.
Total amount exculding sales tax = x
therefore, 8x/100 - 5x/100 = 12
that gives x = 400 and including 8% sales tax the amount is 432.
II wrote:Thanks Stuart.Stuart Kovinsky wrote:We're told that she paid 8% tax, but if she had paid 5% tax she would have paid $12 less. In other words, 3% tax = $12.
If we know that 3% of the sales price is $12, we can figure out the actual sales price.
3/100 = 12/x
3x = 1200
x = 400
We might be tempted by (c) at this point, but remember step 4 of the Kaplan method for problem solving - double check the question!
We want the price she paid including sales tax. She paid 8% tax, so the actual answer is:
400 + 8%(400) = 400 + 32 = 432: choose (E).
Note that (d) is in there to punish people who did everything right then added 5% sales tax instead of 8%!
I did it the traditional way. Assign variables and create equations:
p = purchase price
8% tax on purchase = 0.08p
With 5% tax she would pay $12 less in sales tax on purchase. This can be written as: 0.05p = 0.08p - 12
12 = 0.03p
12/0.03 = p
1200/3 = p
400 = p
So purchase price is $400.
8% of $400 is $32 (1% is 4 ... 4*8 = 32)
$400 + $32 = $432 ... answer E.
