A company accountant estimates that airfares next year for

[BTGmoderatorLU]

Source: Official Guide

A company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, how much will be spent for airfares next year?

A. 22930
B. 26180
C. 26330
D. 26490
E. 29770

The OA is B

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Hi All,

We're told that a company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year, total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, we're asked how much money will be spent in total for airfares next year. Certain questions on Test Day really come down to just doing organized Arithmetic - although you can do a little bit of estimation to save some time on this question.

The cost of the $9900 in flights next year will be $9900 + (.2)($9900) = 9900 + (a little less than $2000, since $2000 is 20% of $10,000)
The cost of the $13,000 in flights next year will be $13,000 + (.1)($13,000) = $13,000 + $1300 = $14,300

Total = $9900 + $14,300 + (a little less than $2000)
Total = $24,200 + (a little less than $2000)
Total = a little less than $26,200

There's only one answer that fits.

Final Answer: B

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

[Jay@ManhattanReview]

Source: Official Guide

A company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, how much will be spent for airfares next year?

A. 22930
B. 26180
C. 26330
D. 26490
E. 29770

The OA is B

Total spending next year = 9900 + 20% of 9900 + 13000 + 10% of 13000 = 120% of 9900 + 110% of 13000 < ~ 1.2*10000 + 1.1*13000 < ~ 12000 + 14300 < ~26300

The current answer must be less than $26300. The closest to $26300 is $26180. Note that $22,830 is way too less than 26300.

The correct answer: B

Hope this helps!

-Jay
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[Scott@TargetTestPrep]

Source: Official Guide

A company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, how much will be spent for airfares next year?

A. 22930
B. 26180
C. 26330
D. 26490
E. 29770

The OA is B

We are given that airfares for business trips of a thousand miles or less will increase 20% next year from $9,900 this year. Thus, the cost of airfares for business trips of a thousand miles or less next year is 1.2 x 9,900 = $11,880. We are also given that airfares for all other business trips will increase 10% next year from $13,000 this year. Thus, the cost of airfares for all other business trips next year is 1.1 x 13,000 = $14,300.

So, 11,880 + 14,300 = $26,180 dollars should be allotted for airfares next year.

Answer: B