A merchant gets a 5% discount on each meter . . . .

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VJesus12: Legendary Member; Posts: 2276; Joined: Sat Oct 14, 2017 6:10 am; Followed by:3 members

A merchant gets a 5% discount on each meter . . . .

by VJesus12 » Sat Jan 27, 2018 7:46 am

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A merchant gets a 5% discount on each meter of fabric he buys after the first 2,000 meters and a 7% discount on every meter after the next 1,500 meters. The price, before discount, of one meter of fabric is $2, what is the total amount of money the merchant spends on 4,500 meters of fabric?

A. $8,617
B. $8,710
C. $8,810
D. $8,835
E. $8,915

The OA is the option B.

How should I make the calculations to solve this PS question? Experts, may you help me? Thanks in advanced.

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Source: Beat The GMAT — Problem Solving | Sat Jan 27, 2018 7:46 am

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

by EconomistGMATTutor » Sat Jan 27, 2018 8:50 am

Hi vjesus12.

Let's take a look at your question.

For the first 2000 meters, there is no discount. Hence the cost is $2*2000 = $4000.

For the next 1500 meters, there is a discount of 5%. Hence the cost is 2$*(1500)*95% = $3000*95/100 = $2850.

For the next 1000 meters, there is a discount of 7%. Hence, the cost is $2*(1000)*93% = $2000*93/100 = $1860.

Therefore, the total amount spent is $4000 + $2850 + $1860 = $8710.

This is why the correct answer is the option B.

I hope this answer can help you.

I'm available if you'd like a follow-up.

Regards.

GMAT Prep From The Economist
We offer 70+ point score improvement money back guarantee.
Our average student improves 98 points.

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

by Scott@TargetTestPrep » Wed Oct 03, 2018 4:31 pm

VJesus12 wrote:A merchant gets a 5% discount on each meter of fabric he buys after the first 2,000 meters and a 7% discount on every meter after the next 1,500 meters. The price, before discount, of one meter of fabric is $2, what is the total amount of money the merchant spends on 4,500 meters of fabric?

A. $8,617
B. $8,710
C. $8,810
D. $8,835
E. $8,915

The first 2000 meters cost 2000 x 2 = 4000 dollars.

The next 1500 meters cost 0.95 x 2 x 1500 = 2850 dollars.

The last 1000 meters cost 0.93 x 2 x 1000 = 1860 dollars.

So the total cost of the 4500 meters of fabric is 4000 + 2850 + 1860 = 8710 dollars.

Answer: B

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