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Word Problem

Expert replies
by carllecat » Tue Nov 17, 2009 8:12 am
In a certain state, gasoline stations compute the price per gallon p, in dollars, charged at the pump by adding a 4% sales tax to the dealer's price per gallon d, in dollars, then adding a gasoline tax of $0.18 per gallon. Which of the following gives the dealer's price per gallon d in terms of the price per gallon p charged at the pump?

A) d = p - 0.22
B) d = p/1.22
C) d = (p/1.04) - 0.18
D) d = p - 0.18/1.04
E) d = p - 0.04/1.18

Answer to be posted later.
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Source: — Problem Solving |

by carllecat » Tue Nov 17, 2009 8:41 am
D) D = p - 0.18/1.04

I do not understand why it is -0.18 instead of +0.18. Can someone please explain?
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by grockit_jake » Tue Nov 17, 2009 10:41 am
The easiest way to start is to set up the equation in terms of d and p in the way the stimulus presents the question:

p = 1.04d + 0.18

Now solve for d:

p - 0.18 = 1.04d

d = (p - 0.18) / d
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by carllecat » Tue Nov 17, 2009 11:11 am
What a silly mistake it was... My formula was:

p + 0.18 = d + 0.04d when it should have been p = d + 0.04d +0.18.


Thanks grockit_jake!
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by cabate2000 » Tue Nov 17, 2009 3:21 pm
Why is the answer not C?

If you assume gas costs $3.00 a gallon for the dealer (d), then you add tax and get $3.00 + $0.12 + 0.18 = $3.30 gallon (p)

Plugging into answer C

d = (p/1.04) - 0.18

$3.00 = ($3.30/$1.04) - $0.18
$3.00 = $3.17-$0.18
(close enough)

Trying a different price, the formula still holds.

$5.00 = ($5.38/$1.04) - $0.18
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by grockit_jake » Tue Nov 17, 2009 3:27 pm
Close enough doesn't count. Sorry.

The reason it's so close is that 0.18 is really small relative to $5 or $3.

You have to "undo" the equation you put forward.

If you set d, then multiply by 1.04 and then subtract, to "undo" you must add first, then divide the sum.

Try answer C with $1 and see what you get
Jake Becker
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by cabate2000 » Tue Nov 17, 2009 3:46 pm
grockit_jake wrote:Close enough doesn't count. Sorry.

The reason it's so close is that 0.18 is really small relative to $5 or $3.

You have to "undo" the equation you put forward.

If you set d, then multiply by 1.04 and then subtract, to "undo" you must add first, then divide the sum.

Try answer C with $1 and see what you get
You are right. But try $3.00 with answer D and see what you get.

d = p - 0.18/1.04

$3.00 = [($3.00*1.04)+.18] - 0.18/1.04
3.00 = $3.30 - 0.17 does not equal $3.00
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by grockit_jake » Tue Nov 17, 2009 3:49 pm
There's a typo on D in the original question that carlcat posted.

it should read.

D. d = (p - 0.18)/1.04
Jake Becker
Academic Director
Grockit Test Prep
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by carllecat » Tue Nov 17, 2009 5:34 pm
grockit_jake wrote:There's a typo on D in the original question that carlcat posted.

it should read.

D. d = (p - 0.18)/1.04
You are right for the typo, apologies.
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by cabate2000 » Tue Dec 01, 2009 9:31 am
I guess I'll take close enough, thanks.
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