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by fizzanasir » Fri Oct 21, 2011 12:04 am
Reggie purchased a car costing $8700. As a down payment he used a $2300 insurance settlement and an amount from his savings equal to 15% of the difference between the cost of the car and the insurance settlement. if he borrowed the rest of the money needed to purchase the car, how much did he borrow?

a) $ 6,400
b) $ 6,055
c) $ 5,440
d) $ 5,095
e) $ 3,360


please help me out with the above problem.
thank you!
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by rijul007 » Fri Oct 21, 2011 12:10 am
Option c


Total cost = $8700
Insurance settlement = $2300
difference = $6400
payment from saving = 15% of 6400 = $960

remaining money that he borrowed = $(6400-960) = $5440
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by shankar.ashwin » Fri Oct 21, 2011 12:15 am
Now total cost to be paid = 8700.

Cost from insurance = 2300.

Therefore, remaining amount to be paid = 8700-2300 = 6400.

But he has paid 15% of this using his savings, so he has to borrow 85% of 6400.

0.85*6400=5440. C IMO
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by neelgandham » Fri Oct 21, 2011 12:48 am
Say, B = Money he borrowed, From the question we get

8700 (Cost of the car) = 2300(Insurance settlement) + ((15/100)*(8700-2300))(15 percent of difference between the cost of the car and the insurance settlement) + B

=> 8700-2300 = ((15/100)*(8700-2300))+B

=> B = (1-(15/100))*(8700-2300)

=> B = 5440, option C
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by Scott@TargetTestPrep » Wed Oct 10, 2018 5:46 pm
fizzanasir wrote:Reggie purchased a car costing $8700. As a down payment he used a $2300 insurance settlement and an amount from his savings equal to 15% of the difference between the cost of the car and the insurance settlement. if he borrowed the rest of the money needed to purchase the car, how much did he borrow?

a) $ 6,400
b) $ 6,055
c) $ 5,440
d) $ 5,095
e) $ 3,360
The difference between the cost of the car and the insurance settlement is:

8,700 - 2,300 = $6,400

Thus, the amount from his savings is 0.15 x 6,400 = $960.

So he had to borrow 6,400 - 960 = $5,440 to pay for the remaining cost of the car.

Answer: C

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