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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 ## In her position as a real estate agent, Sarah receives a bon ##### This topic has 2 expert replies and 1 member reply ### Top Member ## In her position as a real estate agent, Sarah receives a bon ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult In her position as a real estate agent, Sarah receives a bonus for each sale she makes. Last week, she earned a$4,000 bonus, which decreased her average bonus amount to $4800. If this represents a decrease of 4%, how many sales has Sarah made? A 4 B. 5 C. 8 D. 16 E. 25 OA B Source: Veritas Prep ### GMAT/MBA Expert GMAT Instructor Joined 08 Dec 2008 Posted: 12433 messages Followed by: 1244 members Upvotes: 5254 GMAT Score: 770 BTGmoderatorDC wrote: In her position as a real estate agent, Sarah receives a bonus for each sale she makes. Last week, she earned a$4,000 bonus, which decreased her average bonus amount to $4800. If this represents a decrease of 4%, how many sales has Sarah made? A 4 B. 5 C. 8 D. 16 E. 25 Last week, Sarah earned a$4,000 bonus, which decreased her average bonus amount to $4800. This represents a decrease of 4%. Let x = OLD average bonus amount We can write: x - 0.04x =$4800
Simplify: 0.96x = $4800 Solve: x =$4800/(0.96) = $5000 How many sales has Sarah made? Let n = the TOTAL number of sales that Sarah has made. This means (n-1) sales had an average bonus amount of$5000, and 1 sale had an bonus amount of $4000 All of this results in an AVERAGE bonus amount of$4800
We can write: [(n-1)($5000) + (1)($4000)]/n = $4800 Multiply both sides by n to get: (n - 1)(5000) + (1)(4000) = 4800n Expand: 5000n - 5000 + 4000 = 4800n Simplify: 5000n - 1000 = 4800n Solve: n = 5 Answer: B Cheers, Brent _________________ Brent Hanneson â€“ Creator of GMATPrepNow.com Use our video course along with Sign up for our free Question of the Day emails And check out all of our free resources GMAT Prep Now's comprehensive video course can be used in conjunction with Beat The GMATâ€™s FREE 60-Day Study Guide and reach your target score in 2 months! ### Top Member Legendary Member Joined 29 Oct 2017 Posted: 684 messages Followed by: 4 members Original average = 4800/0.96 = 5000 New bonus = 4000 Everyone was 5000 before and now by adding 4000, everyone becomes 4800. The new 4000 also become 4800. The new bonus of 4000 got 800 from others to become 4800 (new average). All the old one (5000) became 4800, so all gave 200 to new guy 4000, so that he becomes 4800. It means 4 old guys gave 200 each. So there were 4 old and 1 new total =5 The correct answer is B. ### GMAT/MBA Expert Elite Legendary Member Joined 23 Jun 2013 Posted: 9949 messages Followed by: 493 members Upvotes: 2867 GMAT Score: 800 Hi All, We're told that Sarah receives a bonus for EACH sale she makes - and that last week, she earned a$4,000 bonus, which decreased her AVERAGE bonus amount to $4800 (which represents a decrease of 4%). We're asked for the number of sales Sarah made. This question can be solved in a couple of different ways, including by TESTing THE ANSWERS. To start, since both the$4800 and 4% are whole numbers (notice that there are no decimal points), Sarah's prior number of sales AND her total number of sales are likely numbers that do NOT lead to repeating decimals when they are divided into a larger number. For example, when dividing an integer by 1 or 2, the result will NOT be a repeating decimal (whereas when dividing by 6 or 7, most of the time the result will be a repeating decimal). Thus, we are likely looking for a total AND '1 less' than the total that both create a non-repeating decimal. The only answer choice that fits THAT pattern is B (re: 4 sales and 5 sales), so we'll TEST that answer first:

Average = $4800/sale, so TOTAL sales = ($4800)(5) = $24,000 Most recent sale =$4000, so prior total = 24,000 - 4000 = $20,000 Prior average =$20,000/4 = $5000 A decease from 5000 to 4800 = (5000 - 4800)/5000 = 200/5000 = 2/50 = .04 = 4% This is an exact match for what we were told, so this MUST be the answer. Final Answer: B GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at Rich.C@empowergmat.com • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

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