Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized for You

we will pick new questions that match your level based on your Timer History

Track Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

27 Mar 2013, 15:41

4

This post received KUDOS

4

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

65% (hard)

Question Stats:

64% (03:46) correct
36% (01:37) wrong based on 262 sessions

HideShow timer Statictics

A retail item is offered at a discount of p percent (where p > 10), with a 5% state sales tax assessed on the discounted purchase price. If the state sales tax were not assessed, what percent discount from the item’s original retail price, in terms of p, would result in the same final price?

A. p+5/1.05 B. p/1.05 +5 C. 1.05p-5 D. p-5/1.05 E. 1.05(p – 5)

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

27 Mar 2013, 22:51

7

This post received KUDOS

1

This post was BOOKMARKED

Let x be the price of the item. Final price after discount and sales tax = x * (1 - p/100) * 1.05

Let q be the percent discount which would result in the same final price. Then, x * (1 - p/100) * 1.05 = x * (1 - q/100) => 1.05 - 1.05p/100 = 1 - q/100 => q/100 = 1.05p/100 - .05 => q = 1.05p - 5

Hence , option C is correct. --------------------------------------- Appreciate your KUDOS. _________________

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

27 Mar 2013, 21:23

5

This post received KUDOS

Expert's post

1

This post was BOOKMARKED

manimgoindowndown wrote:

A retail item is offered at a discount of p percent (where p > 10), with a 5% state sales tax assessed on the discounted purchase price. If the state sales tax were not assessed, what percent discount from the item’s original retail price, in terms of p, would result in the same final price?

p+5/1.05 p/1.05 +5 1.05p-5 p-5/1.05 1.05(p – 5)

Assume p = 20 % and original price = 100. Thus, the discounted purchase price = 80 and the sales tax assessed on this is 5 % = 84. Thus, a 16 % discount on the original retail price would result in the same price. Only option C gives 16 % for p = 20.

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

28 Mar 2013, 05:24

1

This post received KUDOS

So I initially approached it the way you all did but messed up the math as I tried to convert the 1.05 into a fraction over 100 on both sides.

Instead to stay within 2:30 I plugged and chugged Original Price: 100 Discount: 10 Discounted Price: 90

Sales tax on 90 is 4.5. Final price is 94.5

To achieve this price without tax you need a discount of 5.5

The answer choices are nice too for plugging and chugging

p+5/1.05 too big approximately 15/1 p/1.05 +5 too big again 1.05p-5 10.5-5=4.5 exactly p-5/1.05 5/1.05...slightly smaller than 5 but not by much. Not nearly as big as the denominator bring the value to half way between 4 and 5 1.05(p – 5) More than 5. In fact 5.25

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

23 Sep 2013, 02:50

1

This post received KUDOS

Expert's post

rrsnathan wrote:

mau5 wrote:

manimgoindowndown wrote:

A retail item is offered at a discount of p percent (where p > 10), with a 5% state sales tax assessed on the discounted purchase price. If the state sales tax were not assessed, what percent discount from the item’s original retail price, in terms of p, would result in the same final price?

p+5/1.05 p/1.05 +5 1.05p-5 p-5/1.05 1.05(p – 5)

Assume p = 20 % and original price = 100. Thus, the discounted purchase price = 80 and the sales tax assessed on this is 5 % = 84. Thus, a 16 % discount on the original retail price would result in the same price. Only option C gives 16 % for p = 20.

C.

Hi,

Please help me with understanding the question? . What does the second part of the question states " If the state sales tax were not assessed......"

My understanding is that for text ''if the sales tax were not assessed" mean tax is not charged that means the discounted purchase price would be

Discounted purchase price = 80 i.e. with out the 5% of tax in the discounted purchase price

Please help me.

Thanks in Advance, Rrsnathan.

Original price = $100. Discount = p = 20%. Tax = 5%.

Final price = 100*0.8*1.05 = $84.

The question asks: if the tax were not assessed, what percent discount from the original price ($100) would result in the same final price of $84. The answer is 16%.

A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

23 Sep 2013, 05:14

1

This post received KUDOS

manimgoindowndown wrote:

So I initially approached it the way you all did but messed up the math as I tried to convert the 1.05 into a fraction over 100 on both sides.

Instead to stay within 2:30 I plugged and chugged Original Price: 100 Discount: 10 Discounted Price: 90

Sales tax on 90 is 4.5. Final price is 94.5

To achieve this price without tax you need a discount of 5.5

The answer choices are nice too for plugging and chugging

p+5/1.05 too big approximately 15/1 p/1.05 +5 too big again 1.05p-5 10.5-5=4.5 exactly p-5/1.05 5/1.05...slightly smaller than 5 but not by much. Not nearly as big as the denominator bring the value to half way between 4 and 5 1.05(p – 5) More than 5. In fact 5.25

Answer is C

Just a small tip...When plugging in always try the easier option first. A,B and D involve divsion whereas C and E involve only multiplication.

Last edited by b2bt on 03 Oct 2014, 00:35, edited 1 time in total.

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

21 Sep 2013, 22:43

mau5 wrote:

manimgoindowndown wrote:

A retail item is offered at a discount of p percent (where p > 10), with a 5% state sales tax assessed on the discounted purchase price. If the state sales tax were not assessed, what percent discount from the item’s original retail price, in terms of p, would result in the same final price?

p+5/1.05 p/1.05 +5 1.05p-5 p-5/1.05 1.05(p – 5)

Assume p = 20 % and original price = 100. Thus, the discounted purchase price = 80 and the sales tax assessed on this is 5 % = 84. Thus, a 16 % discount on the original retail price would result in the same price. Only option C gives 16 % for p = 20.

C.

Hi,

Please help me with understanding the question? . What does the second part of the question states " If the state sales tax were not assessed......"

My understanding is that for text ''if the sales tax were not assessed" mean tax is not charged that means the discounted purchase price would be

Discounted purchase price = 80 i.e. with out the 5% of tax in the discounted purchase price

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

28 Oct 2013, 15:53

Original price = $100. Discount = p = 20%. Tax = 5%.

Final price = 100*0.8*1.05 = $84.

The question asks: if the tax were not assessed, what percent discount from the original price ($100) would result in the same final price of $84. The answer is 16%.

Does this make sense?

Bunuel,

How have you arrived at this- Discount = p = 20%. _________________

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

30 Oct 2013, 00:53

Expert's post

honchos wrote:

Original price = $100. Discount = p = 20%. Tax = 5%.

Final price = 100*0.8*1.05 = $84.

The question asks: if the tax were not assessed, what percent discount from the original price ($100) would result in the same final price of $84. The answer is 16%.

Does this make sense?

Bunuel,

How have you arrived at this- Discount = p = 20%.

I assumed it, plugged smart numbers. _________________

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

24 Dec 2013, 12:20

manimgoindowndown wrote:

A retail item is offered at a discount of p percent (where p > 10), with a 5% state sales tax assessed on the discounted purchase price. If the state sales tax were not assessed, what percent discount from the item’s original retail price, in terms of p, would result in the same final price?

A. p+5/1.05 B. p/1.05 +5 C. 1.05p-5 D. p-5/1.05 E. 1.05(p – 5)

Backsolving would be the best approach here using Smart Numbers Original price = 100 p = 20% Tax = 5%

Then reduced price after tax $84 So then we need 16% before taxes

Therefore, Target 16 Input P = 20

Now, it would help if the answer choices are stated clearly as fractions but anyway the approach is clear

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

21 Jul 2014, 12:53

Bunuel wrote:

maggie27 wrote:

Bunuel,

What do they mean by "If the state sales tax were not assessed" ? I took the final price as 80 thinking we need not include the sales tax to it !

Original price = $100. Final price = $84.

The question basically asks about the actual discount on the item, which is 16%.

But my doubt is how do we decide that "final price" is 84 which with the applied sales tax or jus 80 which is without sales tax? What if the "If the state sales tax were not assessed" part is omitted?

Re: A retail item is offered at a discount of p percent (where p [#permalink]

Show Tags

18 Jun 2015, 02:47

Bunuel wrote:

honchos wrote:

Original price = $100. Discount = p = 20%. Tax = 5%.

Final price = 100*0.8*1.05 = $84.

The question asks: if the tax were not assessed, what percent discount from the original price ($100) would result in the same final price of $84. The answer is 16%.

Does this make sense?

Bunuel,

How have you arrived at this- Discount = p = 20%.

I assumed it, plugged smart numbers.

Hi Bunnuel,

if 5% on 80 is assessed as sales tax then it should be 80-4 right?

So, my final tally is in. I applied to three b schools in total this season: INSEAD – admitted MIT Sloan – admitted Wharton – waitlisted and dinged No...

A few weeks ago, the following tweet popped up in my timeline. thanks @Uber_Mumbai for showing me what #daylightrobbery means!I know I have a choice not to use it...

“This elective will be most relevant to learn innovative methodologies in digital marketing in a place which is the origin for major marketing companies.” This was the crux...