If the sales tax on a $12.00 purchase is $0.66, what is the

This topic has expert replies
Moderator
Posts: 7187
Joined: Thu Sep 07, 2017 4:43 pm
Followed by:23 members

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

If the sales tax on a $12.00 purchase is $0.66, what is the sales tax on a $20.00 purchase?

A. $1.08
B. $1.10
C. $1.16
D. $1.18
E. $1.20

OA B

Source: Magoosh

GMAT/MBA Expert

User avatar
Elite Legendary Member
Posts: 10392
Joined: Sun Jun 23, 2013 6:38 pm
Location: Palo Alto, CA
Thanked: 2867 times
Followed by:511 members
GMAT Score:800

by [email protected] » Thu Aug 23, 2018 3:38 pm
Hi All,

We're told that the sales tax on a $12.00 purchase is $0.66. We're asked for the sales tax on a $20.00 purchase. This question can be solved in a number of different ways (depending on how you want to organize your math). Here's how you can use a ratio to answer the question.

$20/$12 = 5/3.... so the ratio of the sales taxes will ALSO be 5/3...

5/3 = $X/$0.66
3X = $3.30
X = $1.10

Final Answer: B

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
Image

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pm
Location: Vancouver, BC
Thanked: 5254 times
Followed by:1268 members
GMAT Score:770

by Brent@GMATPrepNow » Fri Aug 24, 2018 6:54 am
BTGmoderatorDC wrote:If the sales tax on a $12.00 purchase is $0.66, what is the sales tax on a $20.00 purchase?

A. $1.08
B. $1.10
C. $1.16
D. $1.18
E. $1.20

OA B

Source: Magoosh
We can also solve this question using equivalent ratios

We're comparing sales tax to retail price
We get: sales tax/retail price = $0.66/$12.00

What is the sales tax on a $20.00 purchase?
Let x = the sales tax

We can write: $0.66/$12.00 = x/$20.00
Cross multiply to get: (0.66)(20) = (12)(x)
To make things easier, let's first divide both sides by 4 to get: (0.66)(5) = (3)(x)
Then divide both sides by 3 to get: (0.22)(5) = x
Evaluate: 1.10 = x

Answer: B

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 7223
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

by Scott@TargetTestPrep » Sun Aug 26, 2018 6:26 pm
BTGmoderatorDC wrote:If the sales tax on a $12.00 purchase is $0.66, what is the sales tax on a $20.00 purchase?

A. $1.08
B. $1.10
C. $1.16
D. $1.18
E. $1.20
If we let n = the sales tax on the 20 dollar purchase, we can create a proportion and solve for n:

0.66/12 = n/20

20 x 0.66 = 12n

13.2 = 12n

13.2/12 = n

1.1 = n

Thus, the sales tax is $1.10.

Alternate solution:

Since 0.66/12 = 0.055 = 5.5%, we see that the sales tax rate is 5.5%. Therefore, on a $20.00 purchase, the sales tax is 20 x 0.055 = $1.10.

Answer: B

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage

Legendary Member
Posts: 2218
Joined: Sun Oct 29, 2017 2:04 pm
Followed by:6 members

by swerve » Mon Aug 27, 2018 3:17 pm
Let x be the sales tax rate.

$12*x/100= 0.66
Solving x=22/4%

For $20,
22/4*20/100=$1.10

Option B