p = 4% of TAX of d + d + 0.18
p = 1.04d +0.18
d = (p-0.18)/1.04
Answer [spoiler]{D}[/spoiler]
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in terms of dealer's price?
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Hi yumi2012,
Rahul has provided an algebra solution to this question. You can also TEST Values to get to the solution.
P = Price per gallon CHARGED
D = Price per gallon for the Dealer
We're told that the Dealer price has a 4% tax AND 18 cents per gallon added on.
So, I'm going to pick a nice round number for D.
D = $10
P = $10 +4%($10) + 18 cents = 10.40 + .18 = 10.58
Now, we plug in D = 10 and P = 10.58 into the answer choices and find a match.
Only answer D matches.
GMAT assassins aren't born, they're made,
Rich
Rahul has provided an algebra solution to this question. You can also TEST Values to get to the solution.
P = Price per gallon CHARGED
D = Price per gallon for the Dealer
We're told that the Dealer price has a 4% tax AND 18 cents per gallon added on.
So, I'm going to pick a nice round number for D.
D = $10
P = $10 +4%($10) + 18 cents = 10.40 + .18 = 10.58
Now, we plug in D = 10 and P = 10.58 into the answer choices and find a match.
Only answer D matches.
GMAT assassins aren't born, they're made,
Rich
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GMATGuruNY
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Dealer's cost: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
Let d=1.
Selling price:
If d=1, then p = d + 4% tax + .18 = 1 + .04 + .18 = 1.22.
Since the problem asks for the value of d, our target is d=1.
Now we plug p=1.22 into the answers to which yields our target of d=1.
Only D works:
d = (p - 0.18)/(1.04) = (1.22 - 0.18)/(1.04) = (1.04)/(1.04) = 1.
The correct answer is D.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
