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Wrong question?!!

Expert replies
by nubu » Sat Nov 13, 2010 2:53 am
Hi,
This is the question i got in OG 12.

151. A toy store regularly sells all stock at a discount of
20 percent to 40 percent. If an additional 25 percent
were deducted from the discount price during a
special sale, what would be the lowest possible price
of a toy costing $16 before any discount?
(A) $ 5.60
(B) $ 7.20
(C) $ 8.80
(D) $ 9.60
(E) $15.20

The point is that the price before any discount must be greater than $16, but there is no answer satisfying this. Do I get the idea of this question incorrectly?
Thanks
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Source: — Problem Solving |

by Rahul@gurome » Sat Nov 13, 2010 4:55 am
nubu wrote:Hi,
This is the question i got in OG 12.

151. A toy store regularly sells all stock at a discount of
20 percent to 40 percent. If an additional 25 percent
were deducted from the discount price during a
special sale, what would be the lowest possible price
of a toy costing $16 before any discount?
(A) $ 5.60
(B) $ 7.20
(C) $ 8.80
(D) $ 9.60
(E) $15.20

The point is that the price before any discount must be greater than $16, but there is no answer satisfying this. Do I get the idea of this question incorrectly?

Read the the red colored part carefully. The question asks for the lowest possible price of a toy (whose original price before any discount was $16) after all the discounts.
Thanks
For the lowest possible price after the discounts, the discounts must be maximum, i.e. first discount of 40%, and then 25%

Original price = $16.
Price after 40% discount = ($16)*(1 - 40/100) = $9.60
Price after another 25% discount = ($9.60)*(1 - 25/100) = $7.20

The correct answer is B.
Rahul Lakhani
Quant Expert
Gurome, Inc.
https://www.GuroMe.com
On MBA sabbatical (at ISB) for 2011-12 - will stay active as time permits
1-800-566-4043 (USA)
+91-99201 32411 (India)
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by nubu » Sat Nov 13, 2010 5:35 am
Now I see.
Thank you very much!
I should be more careful when reading questions. :D
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