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Reggie purchased a car costing $8,700. As a down payment he

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by BTGmoderatorDC » Fri Nov 30, 2018 2:46 am
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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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by [email protected] » Fri Nov 30, 2018 1:36 pm
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

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by fskilnik@GMATH » Fri Nov 30, 2018 6:26 pm
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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by Scott@TargetTestPrep » Thu Apr 04, 2019 5:16 pm
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

OA C

Source: Official Guide

The difference between the cost of the car and the insurance settlement is:

8,700 - 2,300 = $6,400

Thus, the amount he took from his savings is 0.15 x 6,400 = $960.

So he had to borrow 6,400 - 960 = $5,440 to pay for the remaining cost of the car.

Answer: C

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