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# A gas station calculates price per gallon p, in dollars,

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Manager
Joined: 27 Sep 2006
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A gas station calculates price per gallon p, in dollars, [#permalink]  28 Jan 2007, 00:03
A gas station calculates 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. and then adding a gas tax of $0.18 per gallon. Which equation gives the dealer's price per gallon d in terms of the price per gallon p charged at the pump? Answer: d = (p - 0.18) / 1.04 Solution? Intern Joined: 14 Jul 2005 Posts: 44 Location: California Followers: 1 Kudos [?]: 5 [0], given: 0 Re: Gmatprep: Algebra - gasoline [#permalink] 28 Jan 2007, 01:14 successstory wrote: A gas station calculates 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. and then adding a gas tax of$0.18 per gallon. Which equation gives the dealer's price per gallon d in terms of the price per gallon p charged at the pump?

Answer: d = (p - 0.18) / 1.04
Solution?

From problem
p = 104 percent of d + .18
or, p = (104d/100) + .18
or. p = 1.04d + .18
or, p - .18 = 1.04d
or, d = (p - 0.18) / 1.04 --> answer
Hope this helps
Manager
Joined: 29 Nov 2006
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what about the gas tax per gallon
Manager
Joined: 27 Sep 2006
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800-gal - Thanks for the elegant solution!

Adub35 - if you read the question carefully, (I didn't!) the gas tax is per gallon - as is the price p. But it isn't levied on the dealer's price as the sales tax is. After the sales tax, the 0.18 is an additional tax. The solution in the previous post thus makes sense.
HPH.
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