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Word Problems - GMATPrep Test 1

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by kwah » Wed Feb 22, 2012 5:48 pm
I have attached a word document with a question from GMATPrep Test.

Answer: D

I got this right on the exam however, would appreciate steps on how to achieve this result.

Best,
Ken
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by Anurag@Gurome » Wed Feb 22, 2012 6:55 pm
kwah wrote:I have attached a word document with a question from GMATPrep Test.

Answer: D

I got this right on the exam however, would appreciate steps on how to achieve this result.

Best,
Ken
Price per gallon = $p
Dealer's price per gallon = $d
Sales tax = 4% per gallon
Gasoline tax = $0.18 per gallon

Price per gallon at the pump = 1.04 * Dealer's price per gallon + 0.18
So, p = 1.04d + 0.18
p - 0.18 = 1.04d
Therefore, d = (p - 0.18)/1.04

The correct answer is D.
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