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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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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
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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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by cans » Tue Jun 14, 2011 3:28 am
1.15x=207 (for 15 people)
x=20700/115 = 4140/23
price for 1 person= 4140/(23*15) = 828/69 = 12.00
IMO B
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