A retail appliance store priced a video recorder at 20 percent above

Question

A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200. If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?

(A) $198
(B) $216
(C) $220
(D) $230
(E) $240

(A) $198
(B) $216
(C) $220
(D) $230
(E) $240

Skywalker18 · Answer

Wholesale cost of video recorder = 200 $
Video recorder was priced at 20 percent above 200 = 240 $

% discount given by store employee = 10
Emlpoyee paid = .9 * 240 = 216 $

Answer B

sashiim20 · Answer

A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200. If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?

Wholesale cost of video recorder = $200
Marked price of video recorder by retail is at 20% above 200$ = $\frac{120}{100}$ x 200 = $240
Employee 10% discount on retail price = 90% of 240 = $\frac{90}{100}$ x 240 = $216
Therefore Employee paid $216.
Answer B ...

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ScottTargetTestPrep · Answer

We are given that a retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200, or 1.2 x 200 = $240.

If an employee purchased the item at a 10 percent discount, he paid 0.9 x 240 = $216.

Answer: B

amanvermagmat · Answer

So here, basically we are increasing a number first by 20%, and then decreasing it by 10%. So lets say we start with 100.
Increase 100 by 20% = 120
Decrease 120 by 10% = 120-12 = 108

If you start with 100, you end at 108 (overall 8% increase)
If you start with 200 (double of 100), you will end at 216 (double of 108)

Hence  B

generis · Answer

3 quick steps: Translate "percent above" and "percent discount" to multipliers, multiply the multipliers, and multiply that product by the original amount.

Translate to multipliers

20 percent above = 1 + .2 = 1.2

10 percent discount = 1 - .10 = .90

Multiply the multipliers

(1.2)(.90) = 1.08

Multiply that product by original amount

(1.08)*(200) = 216

Answer B

yoysufpolash · Answer

Overall percentage change = (+20) + (-10) +   /   
 = +8

So the employee has to pay an overall 8% increased money

/   * 200 = 216

Answer : B

BrentGMATPrepNow · Answer

A retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200  
20% of $200 = $40
So, the retail price = $200 + $40 =  $240

If a store employee applied the 10 percent employee discount to the retail price to buy the recorder, how much did the employee pay for the recorder?  
10% of  $240  = $24
So, the discounted price =  $240  - $24 =  $216

Answer: B

Cheers,
Brent

EMPOWERgmatRichC · Answer

Hi All,

We're told that a retail appliance store priced a video recorder at 20 percent above the wholesale cost of $200 and a store employee applied the 10 percent employee discount to the retail price to buy the recorder. We're asked for the total price the employee paid for the recorder. The math behind this question can be done in a couple of different ways. You can actually do just a little math - and use the 'spread' of the answer choices to your advantage.

The 20% markup in the wholesale cost can be referred to as (1.2) 
The 10% employee discount can be referred to as (0.9), since the employee is paying 90% of the normal retail price.

Thus, the total price paid that the employee paid for the video recorder would be ($200)(1.2)(0.9)

(1.2)(0.9) = 1.08, meaning that the employee paid 8% more than the retail price. Since 10% of $200 = $20, the employee paid a little less than $220. There's only one answer that fits...

Final Answer:  B

GMAT assassins aren't born, they're made, 
Rich

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A retail appliance store priced a video recorder at 20 percent above

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