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Updated on: 28 Mar 2019, 01:19
00:00

Difficulty:

75% (hard)

Question Stats:

45% (01:48) correct 55% (02:10) wrong based on 60 sessions

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A person paid a total amount of $P to purchase a musical instrument. The total amount includes the price of the instrument, a sales tax and a delivery charge. Was the tax paid more than 10% of the price of the instrument? 1. Sales tax was less than 6% of P. 2. Sales tax was $$\frac{1}{20}$$ of the price of the instrument. _________________ Originally posted by EgmatQuantExpert on 13 Mar 2019, 01:42. Last edited by EgmatQuantExpert on 28 Mar 2019, 01:19, edited 3 times in total. GMAT Club Legend Joined: 18 Aug 2017 Posts: 5484 Location: India Concentration: Sustainability, Marketing GPA: 4 WE: Marketing (Energy and Utilities) Re: A person paid a total amount of$P to purchase a musical instrument.  [#permalink]

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14 Mar 2019, 01:43
EgmatQuantExpert wrote:
A person paid a total amount of $P to purchase a musical instrument. The total amount includes the price of the instrument, a sales tax of 5% charged on the price and a delivery charge, charged as 5% of the tax paid. Was the tax paid more than 10% of the price of the instrument? 1. The tax paid was$400.
2. P = $80000 basic price = x Sales tax = 1.05*x delivery cost = 1.05x *1.05; 1.1025x #1 tax paid = 400$
so 5/100*x= 400
x= 400*100/5 ; basic price = 8000 $; 10% of 8000 ; 800 so yes tax paid was >400$ ; sufficient

#2
P = 80,000
P = 1.1025x
so
80,000=1.1025x
x= 72562.3$; basic price tax = 72562.3*1.05 = 76190.47 tax paid = ~3628$
sufficient
IMO D
Intern
Joined: 14 Aug 2018
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17 Mar 2019, 22:57
e-GMAT Representative
Joined: 04 Jan 2015
Posts: 3158
Re: A person paid a total amount of $P to purchase a musical instrument. [#permalink] ### Show Tags 18 Mar 2019, 23:00 EgmatQuantExpert wrote: A person paid a total amount of$P to purchase a musical instrument. The total amount includes the price of the instrument, a sales tax and a delivery charge. Was the tax paid more than 10% of the price of the instrument?

1. Sales tax was less than 6% of P.
2. Sales tax was $$\frac{1}{20}$$ of the price of the instrument.

Solution

Given:
• A person paid a total amount of $P to purchase a musical instrument. • The total amount includes the price of the instrument, a sales tax and a delivery charge. To find: • Whether the tax paid more than 10% of the price of the instrument or not. Approach and Working: We can say the total paid amount P = Price + Sales Tax + Delivery Charge • Now, to determine whether the tax paid was more than 10% of the price of instrument, we need to know either both the price and tax paid, or the ratio of sales tax and price of the instrument. Analysing Statement 1 As per the information given in statement 1, sales tax is less than 6% of P. • However, from this statement, we cannot determine the relation between sales tax and the price of the instrument. Hence, statement 1 is not sufficient to answer the question. Analysing Statement 2 As per the information given in statement 2, sales tax was 1/20 of the price of the instrument. • Therefore, sales tax as a percentage of the price = 1/20 x 100 = 5% • So, the sales tax paid was less than 10% of the price of the instrument. Hence, statement 2 is sufficient to answer the question. Hence, the correct answer is option B. Answer: B _________________ Re: A person paid a total amount of$P to purchase a musical instrument.   [#permalink] 18 Mar 2019, 23:00
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