The inflation index in Canada for the year 2008 relative to

BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

This topic has expert replies

Post new topic Post Reply

Previous Topic Next Topic

AAPL: Moderator; Posts: 2599; Joined: Sun Oct 29, 2017 2:08 pm; Followed by:2 members

The inflation index in Canada for the year 2008 relative to

by AAPL » Thu Oct 31, 2019 6:25 am

Princeton Review

The inflation index in Canada for the year 2008 relative to the year 2000 was 4, indicating that, the ratio of dollars spent for goods during the year 2000 to dollars spent for the same goods during the year 2008 is 1:4. Similarly, the inflation index in Australia for the year 2008 relative to the year 2000 was 5 and the inflation index in Singapore for the year 2008 relative to the year 2000 was 7. In all three countries, the price of the Model AB-i car was $120 more in 2008 than in 2000. What was the ratio between the prices of the car in Canada, Australia, and Singapore in the year 2008?

A. 4:5:7
B. 4:3:2
C. 1:1:1
D. 16:15:14
E. 14:15:17

OA D

Quote

Source: Beat The GMAT — Problem Solving | Thu Oct 31, 2019 6:25 am

deloitte247: Legendary Member; Posts: 2214; Joined: Fri Mar 02, 2018 2:22 pm; Followed by:5 members

by deloitte247 » Fri Nov 01, 2019 11:42 pm

The ratio of dollars spent on goods from 2000 to 2008 is 1:4, which is in accordance with the inflation index for each year.
Let the price of model AB-i car = x
For Canada;
In 2000; model AB-i car = 1x
In 2008; model AB-i car = 4x
Difference of 2008 - 2000 = $120
4x - 1x = $120
3x = $120
x = $120/3 = $40
Price of model AB-i car in 2008 = 4x = 4 * 40 = $160

For Australia;
In 2000; model AB-i car = 1x
In 2008; model AB-i car = 5x
Difference: 5x - 1x = $120
4x = $120
x = $120/4 = $30
Price of model AB-i car in 2008 = 5x = 5 * 30 = $150

For Singapore;
In 2000; model AB-i car = 1x
In 2008; model AB-i car = 7x
Difference: 7x - 1x = $120
6x = $120
x = $120/6 = $20
Price of model AB-i car in 2008 = 7x = 7 * 20 = $140

The ratio between the prices of the car in Canada, Australia and Singapore in 2008 are as follow;
$$=\frac{160}{10}:\frac{150}{10}:\frac{140}{10}$$
$$=16:15:14$$

Therefore, the correct answer to this question is option D

Quote

GMAT/MBA Expert

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 » Sun Nov 03, 2019 7:32 pm

AAPL wrote:Princeton Review

The inflation index in Canada for the year 2008 relative to the year 2000 was 4, indicating that, the ratio of dollars spent for goods during the year 2000 to dollars spent for the same goods during the year 2008 is 1:4. Similarly, the inflation index in Australia for the year 2008 relative to the year 2000 was 5 and the inflation index in Singapore for the year 2008 relative to the year 2000 was 7. In all three countries, the price of the Model AB-i car was $120 more in 2008 than in 2000. What was the ratio between the prices of the car in Canada, Australia, and Singapore in the year 2008?

A. 4:5:7
B. 4:3:2
C. 1:1:1
D. 16:15:14
E. 14:15:17

OA D

Let c, a, and s be the prices of the car in Canada, Australia, and Singapore, respectively, in 2000. Therefore, 4c, 5a and 7s are the prices of the car in Canada, Australia, and Singapore, respectively, in 2008. We can now create the equations:

c + 120 = 4c, a + 120 = 5a, and s + 120 = 7s.

Solving these equations, we have:

3c = 120

c = 40

And

4a = 120

a = 30

and

6s = 120

s = 20.

Therefore, in 2008, the price of the car is 4(40) = 160 in Canada, 5(30) = 150 in Australia, and 7(20) = 140 in Singapore. Thus the ratio of the prices is 160:150:140 or 16:15:14.

Answer: D

Scott Woodbury-Stewart
Founder and CEO
[email protected]