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## Reggie purchased a car costing $8,700. As a down payment he ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult Reggie purchased a car costing$8,700. As a down payment he used a $2,300 insurance settlement and an amount from his savings equal to 15 percent of the difference between the cost of the car and the insurance settlement. If he borrowed the rest of the money needed to purchase the car, how much did he borrow? A.$6,400

B. $6,055 C.$5,440

D. $5,095 E.$3,360

OA C

Source: Official Guide

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Hi All,

We're told that Reggie purchased a car costing $8,700 and as a down payment he used a$2,300 insurance settlement and an amount from his savings equal to 15 percent of the difference between the cost of the car and the insurance settlement. He borrowed the rest of the money needed to purchase the car. We're asked how much Reggie borrowed. This is essentially just an Arithmetic question.

The difference between the cost of the car and the insurance settlement = 8700 - 2300 = 6400
15% of 6400 = (.15)(6400) = (10% of 6400) + (5% of 6400) = 640 + 320 = 960

6400 - 960 = 5440 is what was left after the combined payment, meaning that Reggie had to borrow $5,440. Final Answer: C GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at Rich.C@empowergmat.com ### GMAT/MBA Expert GMAT Instructor Joined 09 Oct 2010 Posted: 1282 messages Followed by: 29 members Upvotes: 59 BTGmoderatorDC wrote: Reggie purchased a car costing$8,700. As a down payment he used a $2,300 insurance settlement and an amount from his savings equal to 15 percent of the difference between the cost of the car and the insurance settlement. If he borrowed the rest of the money needed to purchase the car, how much did he borrow? A.$6,400

B. $6,055 C.$5,440

D. $5,095 E.$3,360
Source: Official Guide
All numbers presented below are in dollars.

$$8700\,\,\,\,\left\{ \matrix{ \,2300 \hfill \cr \,{{15} \over {100}}\left( {8700 - 2300} \right) = 15 \cdot 64 = 960 \hfill \cr \,\ \,\,?\,\,\,\left( {{\rm{borrowed}}} \right) \hfill \cr} \right.$$
$$? = 8700 - \left( {2300 + 960} \right) = 8700 - 3260 = 5440$$

This solution follows the notations and rationale taught in the GMATH method.

Regards,
Fabio.

_________________
Fabio Skilnik :: GMATH method creator ( Math for the GMAT)
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