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10 Oct 2010, 10:59
1
8
00:00

Difficulty:

55% (hard)

Question Stats:

68% (02:52) correct 32% (02:44) wrong based on 245 sessions

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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 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 (50,000-10,000=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 (40,000-8,000=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.

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10 Oct 2010, 11:08
1
Let us set up a table as follows:

Attachment:

Machine Cost.JPG [ 15 KiB | Viewed 4818 times ]

As you can clearly see, the difference = 66000-52800 = 13200.

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10 Oct 2010, 11:23
1
Thanks both of you.
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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

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23 Apr 2018, 08:36
1
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 machine-Cost of A machines= 132% x (50,000-40,000)=13,200

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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

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