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

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BTGmoderatorDC: Moderator; Posts: 7187; Joined: Thu Sep 07, 2017 4:43 pm; Followed by:23 members

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

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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Source: Beat The GMAT — Problem Solving | Fri Nov 30, 2018 2:46 am

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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

GMAT assassins aren't born, they're made,
Rich

Contact Rich at [email protected]

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fskilnik@GMATH: GMAT Instructor; Posts: 1449; Joined: Sat Oct 09, 2010 2:16 pm; Thanked: 59 times; Followed by:33 members

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)
English-speakers :: https://www.gmath.net
Portuguese-speakers :: https://www.gmath.com.br

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

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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