In a certain state, gasoline stations compute the price....

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BTGmoderatorLU: Moderator; Posts: 2575; Joined: Sun Oct 15, 2017 1:50 pmFollowed by: 6 members

by BTGmoderatorLU » Sat Dec 16, 2017 2:22 pm

In a certain state, gasoline stations compute the price per gallon "p", in dollars, charged at the pump by adding a 4 percent sales tax to the dealer's price per gallon "d", in dollars, and then adding a gasoline tax of $0.18 per gallon. Which of the following gives the dealer's price per gallon "d" in terms of the price per gallon "p" charged at the pump?

A. d = p - 0.22
B. d = p / 1.22
C. d = p / 1.04 - 0.18
D. d = p - 0.18 / 1.04
E. d = p - 0.04 / 1.18

The OA is D.

I'm really confused with this PS question. Please, can any expert assist me with it? Thanks in advanced.

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Source: Beat The GMAT — Problem Solving | Sat Dec 16, 2017 2:22 pm

EconomistGMATTutor: GMAT Instructor; Posts: 555; Joined: Wed Oct 04, 2017 4:18 pmFollowed by: 12 members; Thanked: 180 times

by EconomistGMATTutor » Sun Dec 17, 2017 7:56 am

Hello LUANDATO.

Let's take a look at your question.

It tells us that the price "p" is computed adding the 4% of the price per gallon "d" and then adding 0.18$. That is to say, $$p=d+d\cdot4\%\ +0.18\ \leftrightarrow\ \ \ p-0.18=d\left(1+0.04\right)\ \leftrightarrow\ \ d=\frac{p-0.18}{1.04}.$$ Therefore, the correct answer is D.

I hope this explanation can help you.

Feel free to ask me again if you have a doubt.

Regards.

GMAT Prep From The Economist
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Scott@TargetTestPrep: GMAT Instructor; Posts: 8177; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Sat Sep 21, 2019 11:17 am

BTGmoderatorLU wrote:In a certain state, gasoline stations compute the price per gallon "p", in dollars, charged at the pump by adding a 4 percent sales tax to the dealer's price per gallon "d", in dollars, and then adding a gasoline tax of $0.18 per gallon. Which of the following gives the dealer's price per gallon "d" in terms of the price per gallon "p" charged at the pump?

A. d = p - 0.22
B. d = p / 1.22
C. d = p / 1.04 - 0.18
D. d = p - 0.18 / 1.04
E. d = p - 0.04 / 1.18

We see that p = 1.04d + 0.18, so we have:

1.04d = p - 0.18

d = (p - 0.18)/1.04

Answer: D

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