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A family made a down payment of $75 and borrowed the balance

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A family made a down payment of $75 and borrowed the balance  [#permalink]

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New post 11 Mar 2008, 18:41
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  55% (hard)

Question Stats:

65% (02:18) correct 35% (02:30) wrong based on 253 sessions

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A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?

(A) 6%
(B) 12%
(C) 14%
(D) 16%
(E) 20%

Project PS Butler : Question #104


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Re: A family made a down payment of $75 and borrowed the balance  [#permalink]

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New post Updated on: 11 Mar 2008, 22:15
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el1981 wrote:
A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?(A) 6%(B) 12%(C) 14%(D) 16%(E) 20%

borrowings = 400-75 = 325

total pmt = 23x16 + 9 = 377
so int = 377 - 325 = 52
interest in terms of borrowing = 52/325 = 16%D.

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Originally posted by GMAT TIGER on 11 Mar 2008, 20:49.
Last edited by GMAT TIGER on 11 Mar 2008, 22:15, edited 2 times in total.
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Re: A family made a down payment of $75 and borrowed the balance  [#permalink]

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New post 11 Mar 2008, 20:57
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el1981 wrote:
A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?
(A) 6%
(B) 12%
(C) 14%
(D) 16%
(E) 20%


I get D.

400 is total. they borrowed 400-75 or 325$.

23*16 + 9 = 377$

now 377-325=52.

52/325=.16 or 16%
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Re: A family made a down payment of $75 and borrowed the balance  [#permalink]

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New post 11 Mar 2008, 21:49
GMAT TIGER wrote:
el1981 wrote:
A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?
(A) 6%
(B) 12%
(C) 14%
(D) 16%
(E) 20%


borrowings = 400-75 = 325
total pmt = 23x16 + 9 = 397
so int = 397 - 325 = 72
interest in terms of borrowing = 72/325 = 20%

E.


The total amount is 377, not 397
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Re: A family made a down payment of $75 and borrowed the balance  [#permalink]

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New post 24 Dec 2013, 11:56
el1981 wrote:
A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?
(A) 6%
(B) 12%
(C) 14%
(D) 16%
(E) 20%


Should be pretty straightforward no?

They ask for Interest/Amount borrowed

Amount Borrowed is 325

Interest is 23*16 + 9 - 325 = 52

Therefore 52/326 = Approx 16%

Answer is (D)

Cheers!
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Re: A family made a down payment of $75 and borrowed the balance  [#permalink]

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New post 18 Jul 2014, 17:59
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If it helps:

52/325 could be approximated to 16% by trying to make the denominator 100, 1000, 10000, etc.

So if you multiply by 3/3 you would get (52*3)/(325*3) = 156/975 which would be pretty close to 0.156 if we assume 975 = 1,000. That's a quick way to get the 16%.

Hope it helps!
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Re: A family made a down payment of $75 and borrowed the balance  [#permalink]

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New post 18 Oct 2016, 11:06
Amount Borrowed = $325

Total Balance with interest paid = 23*$16 + $9 = 377

Interest = 377 - 325 = 52

Percentage: (52/325)*100 = 16%

Option D
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Re: A family made a down payment of $75 and borrowed the balance  [#permalink]

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New post 27 Dec 2018, 11:40
1
el1981 wrote:
A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?

(A) 6%
(B) 12%
(C) 14%
(D) 16%
(E) 20%

Project PS Butler : Question #104


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Total amount borrowed = 400 - 75 = 325.

Total amount paid = 23*16 + 9 = 377

interest paid = 377-325 = 52

So percentage = 52/325 * 100 = 52/13*4 = 4*4=16% D
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Re: A family made a down payment of $75 and borrowed the balance   [#permalink] 27 Dec 2018, 11:40
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