selango wrote:At a certain supplier,a machine of type A costs $20,000 and a machine of type B costs $ 50,000. Each machine can be purchased by making a 20 percent down payment and repaying the reminder of the cost and finance charges over a period of time. If the finance charges are equal to 40 % of remainder of the cost, how much less would 2 machines of type A cost than 1 machine of type B under this arrangement?

A) 10,000

B)11,200

C)12,000

D)12,800

E)13,200

OA E

selango wrote:At a certain supplier,a machine of type A costs $20,000 and a machine of type B costs $ 50,000. Each machine can be purchased by making a 20 percent down payment and repaying the reminder of the cost and finance charges over a period of time. If the finance charges are equal to 40 % of remainder of the cost, how much less would 2 machines of type A cost than 1 machine of type B under this arrangement?

A) 10,000

B)11,200

C)12,000

D)12,800

E)13,200

OA E

Rahul@gurome wrote:2 types of Machine A: 20% of $40,000 = $8,000
Remaining cost for 2 machines= $40,000 - $8,000 = $32,000
Finance charges for 2 machines = (40% of $32,000) = $12,800
Down payment + Remaining cost + Finance charges for 2 machines = $8,000 + $32,000 + $12,800 =$52,800

1 type of Machine B: 20% of $50,000 = $10,000
Remaining cost for 1 machine= $40,000
Finance charges for 1 machine = (40% of $40,000) = $16,000
Down payment + Remaining cost + Finance charges for 1 machine = $10,000 + $40,000 + $16,000 =$66,000

Difference in the costs = $66,000 - $52,800 = $13,200

The correct answer is (E).