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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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07 Feb 2018, 04:39
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Difficulty:

15% (low)

Question Stats:

87% (01:22) correct 13% (01:14) wrong based on 42 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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07 Feb 2018, 05:13
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

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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09 Feb 2018, 09:56
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.

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

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12 Feb 2018, 01:59
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   [#permalink] 12 Feb 2018, 01:59
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