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A computer store originally bought 1,000 modems at...

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by AAPL » Mon Jan 13, 2020 11:35 am
Veritas Prep

A computer store originally bought 1,000 modems at a total cost of d dollars. If each modem was sold for 25 percent more than its original cost, what was the individual price, in terms of d, of each modem sold?

A. \(\frac{d}{800}\)
B. \(\frac{5d}{1000}\)
C. \(125d\)
D. \(\frac{d}{1000}+25\)
E. \(\frac{125}{1000d}\)

OA A
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Source: — Problem Solving |

Total cost of 1000 modems = 'd' dollars
cost of 1 modem = d/1000 dollars
1 modem was sold for 25 percent more than its original cost
$$25\%\ of\ original\ \cos t=\frac{25}{100}\cdot\frac{d}{1000}=\frac{25d}{100000}$$
$$selling\ price\ of\ 1\ modem=\frac{d}{100}+\frac{25d}{100000}=\frac{100d+25d}{100000}$$ $$selling\ price=\frac{125d}{100000}=\frac{d}{800}$$
Answer = option A
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AAPL wrote:
Mon Jan 13, 2020 11:35 am
Veritas Prep

A computer store originally bought 1,000 modems at a total cost of d dollars. If each modem was sold for 25 percent more than its original cost, what was the individual price, in terms of d, of each modem sold?

A. \(\frac{d}{800}\)
B. \(\frac{5d}{1000}\)
C. \(125d\)
D. \(\frac{d}{1000}+25\)
E. \(\frac{125}{1000d}\)

OA A
The selling price for each modem is:

d/1000 * 5/4 = 5d/4000 = d/800

Answer: A

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AAPL wrote:
Mon Jan 13, 2020 11:35 am
Veritas Prep

A computer store originally bought 1,000 modems at a total cost of d dollars. If each modem was sold for 25 percent more than its original cost, what was the individual price, in terms of d, of each modem sold?

A. \(\frac{d}{800}\)
B. \(\frac{5d}{1000}\)
C. \(125d\)
D. \(\frac{d}{1000}+25\)
E. \(\frac{125}{1000d}\)

OA A
Given: d = total cost of 1000 modems
So, d/1000 = cost of ONE modem

After the 25% increase, the retail price per modem = (d/1000) + 25% of (d/1000)
= (d/1000) + 0.25 (d/1000)
= d/1000 + 0.25d/1000
= 1.25d/1000
Check answer choices . . . . not there!
We need to find an equivalent form of 1.25d/1000 that's among the answer choices.

Take: 1.25d/1000
Divide top and bottom by 1.25 to get: d/800

Answer: A

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
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