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A traveler has booked a vacation plan with agent X for a total cost

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A traveler has booked a vacation plan with agent X for a total cost  [#permalink]

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New post 07 Feb 2018, 05:39
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A
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D
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  25% (medium)

Question Stats:

81% (00:57) correct 19% (00:55) wrong based on 36 sessions

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A traveler has booked a vacation plan with agent X for a total cost of $1,200 and has already paid agent X a nonrefundable deposit equal to 10% of the cost of the vacation plan. She learns that she can purchase the same vacation plan from agent Y for 20% less. If these are the only costs involved, what will be the net result of breaking the contract with agent X, thereby forfeiting the deposit, and then purchasing the plan through agent Y ?

(A) An increase in the cost of the vacation of $240

(B) An increase in the cost of the vacation of $120

(C) No change in the cost of the vacation

(D) A decrease in the cost of the vacation of $120

(E) A decrease in the cost of the vacation of $240

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Re: A traveler has booked a vacation plan with agent X for a total cost  [#permalink]

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New post 07 Feb 2018, 06:13
Bunuel wrote:
A traveler has booked a vacation plan with agent X for a total cost of $1,200 and has already paid agent X a nonrefundable deposit equal to 10% of the cost of the vacation plan. She learns that she can purchase the same vacation plan from agent Y for 20% less. If these are the only costs involved, what will be the net result of breaking the contract with agent X, thereby forfeiting the deposit, and then purchasing the plan through agent Y ?

(A) An increase in the cost of the vacation of $240

(B) An increase in the cost of the vacation of $120

(C) No change in the cost of the vacation

(D) A decrease in the cost of the vacation of $120

(E) A decrease in the cost of the vacation of $240


We'll first break this extremely wordy problem into bits so we understand what we need to do.
This is a Precise approach.

total cost with X = $1200
already paid = 10% * 1200 = $120
total cost with Y = 80% * 1200 = $960

cost to break contract = already paid + cost with Y = 120 + 960 = $1080
Therefore (D) is our answer.

The Logical approach to this would be to say that instead of paying 100% we are paying 10% + 80% = 90%.
Meaning a decrease of 10%, or $120.
But since the question is so long, it is often more helpful to break it down into bits then to look for an underlying logic.
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Re: A traveler has booked a vacation plan with agent X for a total cost  [#permalink]

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New post 09 Feb 2018, 10:56
Bunuel wrote:
A traveler has booked a vacation plan with agent X for a total cost of $1,200 and has already paid agent X a nonrefundable deposit equal to 10% of the cost of the vacation plan. She learns that she can purchase the same vacation plan from agent Y for 20% less. If these are the only costs involved, what will be the net result of breaking the contract with agent X, thereby forfeiting the deposit, and then purchasing the plan through agent Y ?

(A) An increase in the cost of the vacation of $240

(B) An increase in the cost of the vacation of $120

(C) No change in the cost of the vacation

(D) A decrease in the cost of the vacation of $120

(E) A decrease in the cost of the vacation of $240


The traveler would lose 0.1 x 1200 = 120 dollars from the vacation plan offered by agent X.

The traveler could then buy the vacation plan from agent Y for 1200 x 0.8 = 960 dollars.

Thus, the total cost of the vacation is now 960 + 120 = 1,080.

We see that there is a net decrease in the cost of the vacation of 1200 - 1080 = 120 dollars.

Answer: D
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Re: A traveler has booked a vacation plan with agent X for a total cost  [#permalink]

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New post 12 Feb 2018, 02:59
we know the booking amount as 10% of 1200= 120$...................price paid (as she forfeits )
new plan has a saving of 20% .so 20% of 1200 =240 $................price saved
there fore net profit =240$-120$=120$ (D)
Re: A traveler has booked a vacation plan with agent X for a total cost &nbs [#permalink] 12 Feb 2018, 02:59
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