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Leo can buy a certain computer for p1 dollars in State A,

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Manager
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Leo can buy a certain computer for p1 dollars in State A, [#permalink] New post 07 Dec 2006, 22:42
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E

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Leo can buy a certain computer for p1 dollars in State A, where the sales tax is t1 percent, or he can buy the same computer for p2 dollars in State B, where the sales tax is t2 percent. Is the total cost of the computer greater in State A than in State B?
(1) t1 > t2
(2) p1t1 > p2t2
Director
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 [#permalink] New post 07 Dec 2006, 23:20
Getting E...

2) is insufficient because

400*0.3>500*0.5 in this case B cost is higher

100*0.2>90*0.1 in this case A cost is higher.....

1+2) still insufficient as we can see from the above.....
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 [#permalink] New post 08 Dec 2006, 04:15
Getting E.

Cost fo state A = p1(1+t1/100)
Cost for state B = p2(1+t2/100)

For A > B
to prove:
p1+p1t1/100 > p2+p2t2/100

1 is not sufficient
from 2 we know p1t1 > p2t2. However we don't know if p1>p2.
Combining also we don't know that.
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 [#permalink] New post 08 Dec 2006, 05:14
I got E with the assumption that t1 and t2 are already factored into P1 and P2. The questions says that you can buy a computer for P1 so I assumed, P1 and P2 already includes the tax.


1) Insuff.
2) p1t1>p2t2 Insuff
1&2 p1/p2 >t2/t1 so p1/p2 > something that is less than 1. so can be anything

E
  [#permalink] 08 Dec 2006, 05:14
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Leo can buy a certain computer for p1 dollars in State A,

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