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Bunuel
At a certain restaurant, the price of a sandwich is $ 4.00 more than the price of a cup of coffee. If the price of a sandwich and a cup of coffee is $ 7.35, including a sales tax of 5%, what is the price of a cup of coffee, EXCLUDING the sales tax?

A. $ 1.50
B. $ 3.00
C. $ 4.00
D. $ 5.50
E. $ 7.00

We can let c = the price of a cup of coffee and s = the price of a sandwich and create the following equation:

s = 4 + c

We are also given that the price of a sandwich and cup of coffee is $7.35, including a 5% sales tax. Thus:

1.05(c + s) = 7.35

c + s = 7.35/1.05 = 7

Thus, excluding the 5% sales tax, c + s = 7.

Finally, we can substitute 4 + c for s in the equation c + s = 7 and we have:

c + 4 + c = 7

2c = 3

c = $1.50

Answer: A
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Bunuel
At a certain restaurant, the price of a sandwich is $ 4.00 more than the price of a cup of coffee. If the price of a sandwich and a cup of coffee is $ 7.35, including a sales tax of 5%, what is the price of a cup of coffee, EXCLUDING the sales tax?

A. $ 1.50
B. $ 3.00
C. $ 4.00
D. $ 5.50
E. $ 7.00

\(s + c = 7.00\) ( Ex S.tax )

Now, \(s = c + 4\)

Or, \(( c + 4 ) + c = 7\)

Or, \(2c = 3\)

Or, \(c = 1.5\)

Thus, price of a cup of coffee, EXCLUDING the sales tax is $ 1.50 , answer will be (A) $ 1.50
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Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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