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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## percentage/ratio rates! ##### This topic has 1 expert reply and 3 member replies ## percentage/ratio rates! 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

thank you!

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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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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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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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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.

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