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sunilrawat: Master | Next Rank: 500 Posts; Posts: 112; Joined: Sun Jun 13, 2010 9:20 am; Thanked: 5 times; GMAT Score:640

percentage

by sunilrawat » Sat Jun 11, 2011 4:16 am

The price of lunch for 15 ppl was $207 including a 15% gratuity for service. what was the average price per person excluding the gratuity?

a 11.73
b 12.00
c 13.80
d 14.00
e 15.87

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Source: Beat The GMAT — Problem Solving | Sat Jun 11, 2011 4:16 am

Frankenstein: Legendary Member; Posts: 1448; Joined: Tue May 17, 2011 9:55 am; Location: India; Thanked: 375 times; Followed by:53 members

by Frankenstein » Sat Jun 11, 2011 4:37 am

Hi,
Let the avg price per person excluding gratuity be p

So, 15*p*(1+0.15) = 207 => p=12

Hence, B

Cheers!

Things are not what they appear to be... nor are they otherwise

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sunilrawat: Master | Next Rank: 500 Posts; Posts: 112; Joined: Sun Jun 13, 2010 9:20 am; Thanked: 5 times; GMAT Score:640

by sunilrawat » Sat Jun 11, 2011 4:44 am

if i reduce 15% from 207 and then take the average...wts wrong??

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by Anurag@Gurome » Sat Jun 11, 2011 5:08 am

sunilrawat wrote:The price of lunch for 15 ppl was $207 including a 15% gratuity for service. what was the average price per person excluding the gratuity?

Say the average price per person excluding the gratuity = P
Hence, total price per person excluding the gratuity = 15*P
Therefore, total price per person including the gratuity = 15P + 15% of 15P = (1.15)*15P

Hence, (1.15)*15P = 207
--> P = 207/(15*1.15) = 12

The correct answer is B.

sunilrawat wrote:if i reduce 15% from 207 and then take the average...wts wrong??

The gratuity is on the total price, i.e. 15P. Hence, 15% of $207 is not the gratuity.

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