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We can REASON our way to the correct answer.jzw wrote:what's an easy way to set this up using plugging in?
The tax rates are 8% and 5%.
The answer choices are all integers.
Thus, the base price is likely a multiple of 100; otherwise, the two taxes will not be integers.
If the base price = 400:
8% tax = .08(400) = 32.
5% tax = .05(400) = 20.
32-20 = 12.
Success! The 8% tax is $12 more than the 5% tax.
Thus, the base price with 8% tax = 400+32 = 432.
The correct answer is E.
Algebraically:
Reducing the tax by 3% lowers the price by $12.
Thus, the $12 difference must be 3% of the base price:
.03(x) = 12.
x = 12/(.03) = 1200/3 = 400.
Thus, the base price with 8% tax = 400 + .08(400) = 432.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
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