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by anishprabhu » Sun Feb 15, 2009 6:42 pm
this is an easy one,

Tennis rackets were marked down 5% to 25%. If they were marked down another 10% the next day, what was the lowest cost possible for a tennis racket that was originally selling at $40?

A $27
B $26
C $30
D $34
E $36

Unsure between A and B. I think it should be A. The official answer says B.
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by truplayer256 » Sun Feb 15, 2009 6:55 pm
Yeah, I'm also getting $27 as my answer since:

40x.75x.90=27

However, the official answer is considering a 35% discount instead of a 32.5% discount... because if you do 40x.65=$26.. I think the OA is wrong.
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by DeepakR » Sun Feb 15, 2009 6:58 pm
Anish, yes i too get the same as you.

Maximum possible markup = 25%. So OP=40 hence New P= 40 - 40(1/4)=30.

Another 10% markup = 30-30(1/10)=27 = Ans.) A
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by Stuart@KaplanGMAT » Sun Feb 15, 2009 9:54 pm
As an aside, please always post the source of your questions. If you tell us this is GMAT Prep or a reputable prep company, we'd be very surprised by the mistake in the question. If you tell us you DL'd this off some random site on the net, we'll just know that it's a bad question and to avoid that source in the future.
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