What's wrong with the Question? Motel Rooms

This topic has expert replies
Junior | Next Rank: 30 Posts
Posts: 12
Joined: Mon Jan 04, 2010 10:38 am
Thanked: 2 times

What's wrong with the Question? Motel Rooms

by Xeb » Mon Oct 03, 2011 3:31 am
On a Saturday night, each of the rooms at a certain motel was rented for either $40 or $60. If 10 of the rooms that were rented for $60 had instead been rented for $40, then the total rent the motel charged for that night would have been reduced by 25 percent. What was the total rent the motel actually charged for that night?

(A) $600
(B) $800
(C) $1,000
(D) $1,600
(E) $2,400

A PS question I found. It seems to be a tricky question or is it wrong?
Source: — Problem Solving |

Legendary Member
Posts: 966
Joined: Sat Jan 02, 2010 8:06 am
Thanked: 230 times
Followed by:21 members

by shankar.ashwin » Mon Oct 03, 2011 3:37 am
25% of rent = 10(60-40) (10 rooms and diff between rents)
= 200

Rent = 800

User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Mon Oct 03, 2011 3:45 am
Xeb wrote:On a Saturday night, each of the rooms at a certain motel was rented for either $40 or $60. If 10 of the rooms that were rented for $60 had instead been rented for $40, then the total rent the motel charged for that night would have been reduced by 25 percent. What was the total rent the motel actually charged for that night?

(A) $600
(B) $800
(C) $1,000
(D) $1,600
(E) $2,400

A PS question I found. It seems to be a tricky question or is it wrong?
If 10 of the rooms had been rented for $40 instead of for $60, the hotel would have received $20 less per room.
Decrease in revenue = 10*20 = $200.
Thus, $200 must be 25% of the total rent charged.
Looking at the answer choices, we can see that 200 is 25% of answer choice B:
.25*800 = 200.

The correct answer is B.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
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
Student Review #3