Author 
Message 
TAGS:

Hide Tags

Senior Manager
Joined: 18 Feb 2008
Posts: 437
Location: Kolkata

At a certain supplier, a machine of type A costs $20,000 and
[#permalink]
Show Tags
10 Oct 2010, 10:59
Question Stats:
68% (02:52) correct 32% (02:44) wrong based on 245 sessions
HideShow timer Statistics
At a certain supplier, a machine of type A costs $20,000 and a machine of type B costs $50,000. Each machine can be purchased by making a 20 percent down payment and repaying the remainder of the cost and the finance charges over a period of time. If the finance charges are equal to 40 percent of the remainder of the cost, how much less would 2 machines of type A cost than 1 machine of type B under this arrangement? A. $10,000 B. $11,200 C. $12,000 D. $12,800 E. $13,200
Official Answer and Stats are available only to registered users. Register/ Login.



Math Expert
Joined: 02 Sep 2009
Posts: 50007

Re: Gprep Question
[#permalink]
Show Tags
10 Oct 2010, 11:02
suyashjhawar wrote: At a certain supplier, a machine of type A costs $20,000 and a machine of type B costs $50,000. Each machine can be purchased by making a 20 percent down payment and repaying the remainder of the cost and the finance charges over a period of time. If the finance charges are equal to 40 percent of the remainder of the cost, how much less would 2 machines of type A cost than 1 machine of type B under this arrangement? A. $10,000 B. $11,200 C. $12,000 D. $12,800 E. $13,200 How to do this a bit quicker.I took too much time for this.Bunuel...Congrats in advance for the 1st/2nd Prize 1 machine of type B will cost: 20% down payment of 50,000 = 10,000 plus remaining sum (50,00010,000=40,000) with 40% of finance charges 40,000*1.4=56,000 > 10,000+56,000=66,000; 2 machine of type A will cost: 20% down payment of 2*20,000 = 8,000 plus remaining sum (40,0008,000=32,000) with 40% of finance charges 32,000*1.4=44,800 > 8,000+44,800=52,800; Difference = 66,000  52,800 = 13,200. Answer: E.
_________________
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? Extrahard Quant Tests with Brilliant Analytics



SVP
Status: Three Down.
Joined: 09 Jun 2010
Posts: 1856
Concentration: General Management, Nonprofit

Re: Gprep Question
[#permalink]
Show Tags
10 Oct 2010, 11:08
Let us set up a table as follows: Attachment:
Machine Cost.JPG [ 15 KiB  Viewed 4818 times ]
As you can clearly see, the difference = 6600052800 = 13200. Hence the answer is E.



Senior Manager
Joined: 18 Feb 2008
Posts: 437
Location: Kolkata

Re: Gprep Question
[#permalink]
Show Tags
10 Oct 2010, 11:23
Thanks both of you.



SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1829
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)

Re: At a certain supplier, a machine of type A costs $20,000 and
[#permalink]
Show Tags
28 Jan 2015, 21:35
Cost of 2 Type A machines \(= 8000 + \frac{80}{100} * 40000 * \frac{140}{100}\) Cost of Type B machine \(= 10000 + \frac{80}{100} * 50000 * \frac{140}{100}\) Difference \(= 2000 + \frac{140}{100} * \frac{80}{100} * 10000 = 13200\) Answer = E
_________________
Kindly press "+1 Kudos" to appreciate



EMPOWERgmat Instructor
Status: GMAT Assassin/CoFounder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 12687
Location: United States (CA)

Re: At a certain supplier, a machine of type A costs $20,000 and
[#permalink]
Show Tags
20 Jan 2018, 15:26
Hi All, This question is really just about basic arithmetic and staying organized. Based on the information in the prompt, there are two 'total costs' that we have to calculate... Total cost of purchasing 2 Type A machines = Base Price = (2)($20,000) = $40,000 The 20% down payment = (.2)(2)($20,000) = $8,000 40% Finance Charge on the remainder = (.4)($32,000) = $12,800 Total = $40,000 + $12,800 = $52,800 Total cost of purchasing 1 Type B machine = Base Price = $50,000 The 20% down payment = (.2)($50,000) = $10,000 40% Finance Charge on the remainder = (.4)($40,000) = $16,000 Total = $50,000 + $16,000 = $66,000 The difference in those two totals is... $66,000  $52,800 = $13,200 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
CoFounder & 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!*****



Intern
Joined: 07 Jan 2018
Posts: 12

Re: At a certain supplier, a machine of type A costs $20,000 and
[#permalink]
Show Tags
23 Apr 2018, 08:36
Cost of N unit of Machine= Nx (20% downpayment + 80% remaining sum + 40% of the 80% remaining sum) = Nx (cost of 100% machine + cost of 32% machine) = N x (cost of 132% machine)
Cost of B Machine= 1x 132% x 50,000
Cost of A machines= 2 x 132% x 20,000=132% x 40,000
Cost of B machineCost of A machines= 132% x (50,00040,000)=13,200
Answer: E



Target Test Prep Representative
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 3896
Location: United States (CA)

Re: At a certain supplier, a machine of type A costs $20,000 and
[#permalink]
Show Tags
24 Apr 2018, 11:24
suyashjhawar wrote: At a certain supplier, a machine of type A costs $20,000 and a machine of type B costs $50,000. Each machine can be purchased by making a 20 percent down payment and repaying the remainder of the cost and the finance charges over a period of time. If the finance charges are equal to 40 percent of the remainder of the cost, how much less would 2 machines of type A cost than 1 machine of type B under this arrangement?
A. $10,000 B. $11,200 C. $12,000 D. $12,800 E. $13,200 We are given that a machine of type A costs $20,000, and that a machine of type B costs $50,000. We are also given that each machine can be purchased by making a 20 percent down payment and repaying the remainder of the cost and the finance charges over a period of time. We need to determine the difference in cost between 2 machines of type A and 1 machine of type B. Let’s determine the cost, with finance charges, of 1 machine of type A. Down payment = 20,000 x 0.2 = 4,000 Remainder = 20,000  4,000 = 16,000 Since the remainder of the cost is 16,000, the finance charge is 0.4 x 16,000 = 6,400. Thus, machine A would cost 20,000 + 6,400 = 26,400, and two machines of type A would cost 26,400 x 2 = 52,800. Now we can calculate the cost, with finance charges, of 1 machine of type B. Down payment = 50,000 x 0.2 = 10,000 Remainder = 50,000  10,000 = 40,000 Since the remainder of the cost is 40,000, the finance charge is 0.4 x 40,000 = 16,000. Thus, 1 machine of type B would cost 50,000 + 16,000 = 66,000. The difference in cost between 2 machines of type A and 1 machine of type B is: 66,000  52,800 = 13,200 Answer: E
_________________
Scott WoodburyStewart
Founder and CEO
GMAT Quant SelfStudy Course
500+ lessons 3000+ practice problems 800+ HD solutions




Re: At a certain supplier, a machine of type A costs $20,000 and &nbs
[#permalink]
24 Apr 2018, 11:24






