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10 Oct 2010, 10:59
1
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4
This post was
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Difficulty:

65% (hard)

Question Stats:

64% (02:03) correct 36% (02:21) wrong based on 168 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 [Reveal] Spoiler: OA Math Expert Joined: 02 Sep 2009 Posts: 44298 Re: Gprep Question [#permalink] ### Show Tags 10 Oct 2010, 11:02 Expert's post 1 This post was BOOKMARKED 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
KUDOS
Let us set up a table as follows:

Attachment:

Machine Cost.JPG [ 15 KiB | Viewed 3799 times ]

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

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10 Oct 2010, 11:23
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

[Reveal] Spoiler:
E

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