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The purchase price of Beth's new car, including the sales

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by AAPL » Mon Oct 21, 2019 1:29 am
GMAT Paper Tests

The purchase price of Beth's new car, including the sales tax, is $8,000. If she finances the car, making a down payment of $2,000 and paying off the rest in equal monthly installments, what will be the total cost of the car, including the sales tax and financing?

1) The installments are to be $200 per month.
2) The installments will extend over a period of exactly 3 years.

OA C
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Source: — Data Sufficiency |

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by Jay@ManhattanReview » Mon Oct 21, 2019 5:00 am
AAPL wrote:GMAT Paper Tests

The purchase price of Beth's new car, including the sales tax, is $8,000. If she finances the car, making a down payment of $2,000 and paying off the rest in equal monthly installments, what will be the total cost of the car, including the sales tax and financing?

1) The installments are to be $200 per month.
2) The installments will extend over a period of exactly 3 years.

OA C
To get the total cost of the car, including the sales tax and financing, we need to know the amount of equated monthly installment and the no. of such equated monthly installments.

These two information are given in both the statements, thus, both the statements together are sufficient.

Total cost of car, including the sales tax and financing = 2,000 + 200*36. Sufficient.

The correct answer: C

Hope this helps!

-Jay
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by swerve » Mon Oct 21, 2019 12:16 pm
AAPL wrote:GMAT Paper Tests

The purchase price of Beth's new car, including the sales tax, is $8,000. If she finances the car, making a down payment of $2,000 and paying off the rest in equal monthly installments, what will be the total cost of the car, including the sales tax and financing?

1) The installments are to be $200 per month.
2) The installments will extend over a period of exactly 3 years.

OA C
Statement 1: just tells that $200 will be the installment per month. Not enough information to find out the total cost of the car including financing. Insufficient \(\Large{\color{red}\chi}\)

Similarly,

Statment 2: Gives information about the period till which installments need to be paid. Insufficient \(\Large{\color{red}\chi}\)

When we combine both statements, we get $9200 as the total cost of car where 1200 is financing \(\Large{\color{green}\checkmark}\)

Therefore, C is the correct answer.
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