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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 ### Top Member Legendary Member Joined 29 Oct 2017 Posted: 933 messages Followed by: 4 members Top Reply 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 GMAT Instructor Joined 08 Dec 2008 Posted: 12924 messages Followed by: 1248 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 my video course along with Sign up for free Question of the Day emails And check out all of these 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! ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2634 messages Followed by: 18 members Upvotes: 43 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 OA B Source: Veritas Prep The old average was 4800/0.96 = 5,000. We can let n = the number of sales she made and create the equation: [5000(n - 1) + 4000]/n = 4800 5000n - 5000 + 4000 = 4800n 200n = 1000 n = 5 Answer: B _________________ Scott Woodbury-Stewart Founder and CEO scott@targettestprep.com See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • FREE GMAT Exam Know how you'd score today for$0

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