BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Problem 3

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Senior | Next Rank: 100 Posts
Posts: 49
Joined: Mon Feb 10, 2014 1:18 am
Followed by:3 members

Problem 3

by candygal79 » Thu Apr 03, 2014 4:46 am
A certain state levies charge 4% tax on the nightly rates of hotel room. A certain hotel in this state also charge $ 2.00 nightly fee per room which is not subjected to tax. If the total charge for a room for one night was $ 74.80, what was the nightly rate of the room ?
Top
Source: — Problem Solving |

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 » Thu Apr 03, 2014 7:16 am
A certain state levies a 4 percent tax on the nightly rates of hotel rooms. A certain hotel in this state also charges a $2.00 nightly fee per room, which is not subject to tax. If the total charge for a room for one night was $74.80, what was the nightly rate of the room?

68
69
70
71
72
Please include the 5 answer choices when posting questions.

TOTAL cost = (nightly rate) + (4% of nightly rate) + $2
Let r = nightly rate

We get: 74.80 = r + 0.04r + 2
Simplify: 74.80 = 1.04r + 2
Subtract 2 from both sides: 72.80 = 1.04r
r = 72.80/1.04
r = 70

Answer: C

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

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 » Thu Apr 03, 2014 7:21 am
A certain state levies a 4 percent tax on the nightly rates of hotel rooms. A certain hotel in this state also charges a $2.00 nightly fee per room, which is not subject to tax. If the total charge for a room for one night was $74.80, what was the nightly rate of the room?

68
69
70
71
72
Another option is to PLUG IN the answer choices until we get a match.

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

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 Apr 03, 2014 8:13 pm
Hi candygal79,

As Brent pointed out in his second post, you can also TEST THE ANSWERS. Certain GMAT Quant questions are written in such a way that you can just plug the answers in to the information in the prompt until you find the one that matches. This method can be remarkably fast when done correctly.

With these 5 answers choices, you could technically start with any of them. In most cases, you should opt to test one of the "middle" answers first (usually starting with B or D is the best choice, but here answer C is a nice round number, so it would be easy to test).

If the nightly rate was $70, then the tax would be 4% of 70......04(70) = 2.80 and then you'd add the $2 room fee....

70 + 2.80 + 2 = 74.80 which is an exact match for what's listed in the prompt.

Thus, the final answer is C

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
Image
Top
Post new topic Post Reply
• Page 1 of 1