A company accountant estimates

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BTGmoderatorDC: Moderator; Posts: 7187; Joined: Thu Sep 07, 2017 4:43 pm; Followed by:23 members

A company accountant estimates

by BTGmoderatorDC » Wed Dec 20, 2017 4:46 am

A company accountant estimates that train fares for business trips next year will increase by 10 percent, and airfares for business trips will increase by 15 percent. This year total train fares for business trips were $7,500, and total airfares for business trips were $11,200. According to the accountant's estimates, if the same business trips will be made next year as this year, how much money should be allotted for train fares and airfares next year?

A. $18,700
B. $20,570
C. $20,945
D. $21,130
E. $21,505

Can some experts show me the best solution in this?

OA D

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Source: Beat The GMAT — Problem Solving | Wed Dec 20, 2017 4:46 am

GMATWisdom: Master | Next Rank: 500 Posts; Posts: 100; Joined: Wed Nov 29, 2017 4:38 pm; Thanked: 14 times

by GMATWisdom » Wed Dec 20, 2017 7:15 am

lheiannie07 wrote:A company accountant estimates that train fares for business trips next year will increase by 10 percent, and airfares for business trips will increase by 15 percent. This year total train fares for business trips were $7,500, and total airfares for business trips were $11,200. According to the accountant's estimates, if the same business trips will be made next year as this year, how much money should be allotted for train fares and airfares next year?

A. $18,700
B. $20,570
C. $20,945
D. $21,130
E. $21,505

Can some experts show me the best solution in this?

OA D

Calculate 107500+11200=18700
With 10% increase the amount would be 18700x1.1=20570
Additional 5% increase in 11200 is 560
Hence total money he should allot for next year=20570+560=21130
Option D is correct.

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

by EconomistGMATTutor » Thu Dec 21, 2017 2:48 pm

A company accountant estimates that train fares for business trips next year will increase by 10 percent, and airfares for business trips will increase by 15 percent. This year total train fares for business trips were $7,500, and total airfares for business trips were $11,200. According to the accountant's estimates, if the same business trips will be made next year as this year, how much money should be allotted for train fares and airfares next year?

A. $18,700
B. $20,570
C. $20,945
D. $21,130
E. $21,505

Can some experts show me the best solution in this?

OA D

Hi lheiannie07,
Let's take a look at your question.

Train fares for business trips this year = $7,500
10% increase in train fares business trips next year = 7,500 * 10% = 7500 * 0.1 = $750
Total Train fares for business trips next year = $7,500 + $750 = $8,250

Air fares for business trips this year = $11,200
15% increase in air fares for business trips next year = 11,200 * 15% = 11,200 * 0.15 = $1,680
Total Air fares for business trips next year = $11,200 + $1,680 = $12,880

Total money allotted for next year business trips = $8,250 + $12,880 = $21,130

Therefore, Option D is correct.

Hope it helps.
I am available if you's like any follow up.

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by Scott@TargetTestPrep » Mon Sep 09, 2019 6:27 pm

BTGmoderatorDC wrote:A company accountant estimates that train fares for business trips next year will increase by 10 percent, and airfares for business trips will increase by 15 percent. This year total train fares for business trips were $7,500, and total airfares for business trips were $11,200. According to the accountant's estimates, if the same business trips will be made next year as this year, how much money should be allotted for train fares and airfares next year?

A. $18,700
B. $20,570
C. $20,945
D. $21,130
E. $21,505

Can some experts show me the best solution in this?

OA D

We are given that train fares will increase 10% from this year's price of 7,500. Thus, the new price is 1.1 x 7,500 = 8,250. We are also given that airfares will increase 15% from this year's price of 11,200. Thus, the new price is 1.15 x 11,200 = 12,880.

So, 8250 + 12880 = 21,130 dollars should be allotted for travel next year.

Answer: D

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