GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 24 Sep 2018, 00:45

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

An auction house charges a commission of 15% on the first

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
avatar
Joined: 29 Nov 2011
Posts: 78
An auction house charges a commission of 15% on the first  [#permalink]

Show Tags

New post Updated on: 29 May 2012, 00:22
2
4
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

81% (01:14) correct 19% (01:39) wrong based on 292 sessions

HideShow timer Statistics

An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price in excess of $50,000. What was the price of a painting for which the house charged a total commission of $24,000?

A. $115,000
B. $160,000
C. $215,000
D. $240,000
E. $365,000

Originally posted by Smita04 on 28 May 2012, 19:37.
Last edited by Bunuel on 29 May 2012, 00:22, edited 2 times in total.
Edited the question and added the OA
Most Helpful Community Reply
Manager
Manager
User avatar
Joined: 04 Oct 2011
Posts: 197
Location: India
Concentration: Entrepreneurship, International Business
GMAT 1: 440 Q33 V13
GPA: 3
Re: An auction house charges a commission of 15% on the first  [#permalink]

Show Tags

New post 06 Sep 2012, 19:54
4
2
carcass wrote:
Bunuel I would ask one thing if I can: in this kind of problem algebra (set up an equation) is faster than for instance backsolving in general, or always depends on you ??

Thanks


It Always depends on you!

For this question i did in this way.

50000 - 10 % = 7500
Then commission for remaining amount will be 24000-7500=16500

Then amount which gives this 16500 as 10% should be 165000.


Therefore summing up 165000+50000 = 215000

This was the way i felt easy for me. :-D
_________________

GMAT - Practice, Patience, Persistence
Kudos if u like :)

General Discussion
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 49364
Re: An auction house charges a commission of 15% on the first  [#permalink]

Show Tags

New post 29 May 2012, 00:28
2
2
Smita04 wrote:
An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price in excess of $50,000. What was the price of a painting for which the house charged a total commission of $24,000?

A. $115,000
B. $160,000
C. $215,000
D. $240,000
E. $365,000


Say the price of the house was $x, then 0.15*50,000+0.1*(x-50,000)=24,000 --> x=$215,000 (15% of $50,000 plus 10% of the amount in excess of $50,000, which is x-50,000, should equal to total commission of $24,000).

Answer: C.
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Board of Directors
User avatar
P
Joined: 01 Sep 2010
Posts: 3413
Re: An auction house charges a commission of 15% on the first  [#permalink]

Show Tags

New post 06 Sep 2012, 18:37
Director
Director
User avatar
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 504
Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Re: An auction house charges a commission of 15% on the first  [#permalink]

Show Tags

New post 05 Oct 2013, 10:42
Quote:
It Always depends on you!
For this question i did in this way.
50000 - 10 % = 7500
Then commission for remaining amount will be 24000-7500=16500
Then amount which gives this 16500 as 10% should be 165000.

Therefore summing up 165000+50000 = 215000

This was the way i felt easy for me. :-D


This is the way i did it. With several parts to the equation, I kind of tackled it one part at time instead of developing an equation. That's the way my mind works. I could have derived the equation after the fact but that would have been pointless since once you get the answer you are done.
Senior Manager
Senior Manager
avatar
Joined: 15 Sep 2011
Posts: 341
Location: United States
WE: Corporate Finance (Manufacturing)
GMAT ToolKit User
Re: An auction house charges a commission of 15% on the first  [#permalink]

Show Tags

New post 01 Jul 2015, 18:02
1
3
Back solving to arrive at $24,000. The variable is amount greater than $50,000 because 15% of 50,000 is $7,500 and therefore what brings the calculation to $16,500.

A. $115,000 - 50,000 = 65,000 * 10% = $6,500. Not correct.
B. $160,000 - 50,000 = 110,000 * 10% = $11,000. Not correct.
C. $215,000 - 50,000 = 165,000 * 10% = 16,500. Correct.
D. $240,000 Going to be too high. Not correct.
E. $365,000 Going to be too high. Not correct.

Thanks,
A
EMPOWERgmat Instructor
User avatar
V
Status: GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 12444
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Re: An auction house charges a commission of 15% on the first  [#permalink]

Show Tags

New post 07 Feb 2018, 12:13
1
Hi All,

This question can be solved by TESTing THE ANSWERS.

We're told that the commission is 15% of the first $50,000 (so that's $7,500) and 10% of the anything above $50,000. Then we're told that the total commission on an item was $24,000. We're asked for the overall price of the item.

Let's TEST Answer B: $160,000

We already know that the first $7,500 comes from the first $50,000.
10% of the remaining $110,000 = $11,000
$7500 + $11000 = $18,500 which is TOO LOW.
Eliminate Answers B and A.

Next, Let's TEST Answer D: $240,000

We already know that the first $7,500 comes from the first $50,000.
10% of the remaining $190,000 = $19,000
$7500 + $19000 = $26,500 which is TOO HIGH.
Eliminate Answers D and E.

There's only one answer left.

Final Answer:

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

760+: Learn What GMAT Assassins Do to Score at the Highest Levels
Contact Rich at: Rich.C@empowergmat.com

Rich Cohen

Co-Founder & GMAT Assassin

Special Offer: Save $75 + GMAT Club Tests Free
  Official GMAT Exam Packs + 70 Pt. Improvement Guarantee
www.empowergmat.com/

***********************Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!***********************

GMAT Club Bot
Re: An auction house charges a commission of 15% on the first &nbs [#permalink] 07 Feb 2018, 12:13
Display posts from previous: Sort by

An auction house charges a commission of 15% on the first

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Events & Promotions

PREV
NEXT


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.