GMAT Paper Tests
A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200. If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?
A. $198
B .$216
C. $220
D. $230
E. $240
OA B.
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A reatil appliance store priced a video recorder at 20
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AAPL wrote:A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200. If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?
A. $198
B .$216
C. $220
D. $230
E. $240
A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200
20% of $200 = $40
So, the retail price = $200 + $40 = $240
If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?
10% of $240 = $24
So, the discounted price = $240 - $24 = $216
Answer: B
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Brent
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Hi All,
We're told that a retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200 and a store employee applied the 10 percent employee discount to the retail price to buy the recorder. We're asked for the total price the employee paid for the recorder. The math behind this question can be done in a couple of different ways. You can actually do just a little math - and use the 'spread' of the answer choices to your advantage.
The 20% markup in the wholesale cost can be referred to as (1.2)
The 10% employee discount can be referred to as (0.9), since the employee is paying 90% of the normal retail price.
Thus, the total price paid for the video recorder would be ($200)(1.2)(0.9)
(1.2)(0.9) = 1.08, meaning that the employee paid 8% more than the retail price. Since 10% of $200 = $20, the employee paid a little less than $220. There's only one answer that fits...
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
We're told that a retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200 and a store employee applied the 10 percent employee discount to the retail price to buy the recorder. We're asked for the total price the employee paid for the recorder. The math behind this question can be done in a couple of different ways. You can actually do just a little math - and use the 'spread' of the answer choices to your advantage.
The 20% markup in the wholesale cost can be referred to as (1.2)
The 10% employee discount can be referred to as (0.9), since the employee is paying 90% of the normal retail price.
Thus, the total price paid for the video recorder would be ($200)(1.2)(0.9)
(1.2)(0.9) = 1.08, meaning that the employee paid 8% more than the retail price. Since 10% of $200 = $20, the employee paid a little less than $220. There's only one answer that fits...
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
So here, basically we are increasing a number first by 20%, and then decreasing it by 10%. So lets say we start with 100.
Increase 100 by 20% = 120
Decrease 120 by 10% = 120-12 = 108
If you start with 100, you end at 108 (overall 8% increase)
If you start with 200 (double of 100), you will end at 216 (double of 108)
Hence B is the correct answer.
Increase 100 by 20% = 120
Decrease 120 by 10% = 120-12 = 108
If you start with 100, you end at 108 (overall 8% increase)
If you start with 200 (double of 100), you will end at 216 (double of 108)
Hence B is the correct answer.
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Scott@TargetTestPrep
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We are given that a retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200, or 1.2 x 200 = $240.AAPL wrote:GMAT Paper Tests
A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200. If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?
A. $198
B .$216
C. $220
D. $230
E. $240
OA B.
If an employee purchased the item at a 10 percent discount, he paid 0.9 x 240 = $216.
Answer: B
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