BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

A company accountant estimates that airfares next year for business trips of a thousand miles or less...

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Moderator
Posts: 2505
Joined: Sun Oct 15, 2017 1:50 pm
Followed by:6 members

A company accountant estimates that airfares next year for business trips of a thousand miles or less...

by BTGmoderatorLU » Thu Aug 27, 2020 3:03 pm

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

Source: GMAT Paper Tests

A company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, how much will be spent for airfares next year?

A. $22,930
B. $26,180
C. $26,330
D. $26,490
E. $29,770

The OA is B
Top
Source: — Problem Solving |
Junior | Next Rank: 30 Posts
Posts: 11
Joined: Wed Aug 26, 2020 9:45 am

Re: A company accountant estimates that airfares next year for business trips of a thousand miles or less...

by dg1900 » Fri Aug 28, 2020 2:21 am
A company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, how much will be spent for airfares next year?

Airfares from thousand miles or less business trips will rise by 20% from last year and airfare from business trips for other trips will rise by 10% if the same number of trips as this year are made next year.

Next years airfare spend will be:
1.2*9900 + 1.1*13000
= 11880 + 14300
= 26180
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8086
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

Re: A company accountant estimates that airfares next year for business trips of a thousand miles or less...

by Scott@TargetTestPrep » Mon Aug 31, 2020 10:35 am
BTGmoderatorLU wrote: ↑
Thu Aug 27, 2020 3:03 pm
A company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, how much will be spent for airfares next year?

A. $22,930
B. $26,180
C. $26,330
D. $26,490
E. $29,770

The OA is B
Solution:

We are given that airfares for business trips of a thousand miles or less will increase 20% next year from $9,900 this year. Thus, the cost of airfares for business trips of a thousand miles or less next year is 1.2 x 9,900 = $11,880. We are also given that airfares for all other business trips will increase 10% next year from $13,000 this year. Thus, the cost of airfares for all other business trips next year is 1.1 x 13,000 = $14,300.

So, 11,880 + 14,300 = $26,180 dollars should be allotted for airfares next year.

Answer: B

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage
Top
Post new topic Post Reply
• Page 1 of 1