Last visit was: 11 Jul 2025, 07:48 It is currently 11 Jul 2025, 07:48
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
555-605 Level|   Word Problems|            
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 11 Jul 2025
Posts: 102,634
Own Kudos:
Given Kudos: 98,170
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 102,634
Kudos: 740,395
 [37]
1
Kudos
Add Kudos
36
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
BrentGMATPrepNow
User avatar
Major Poster
Joined: 12 Sep 2015
Last visit: 13 May 2024
Posts: 6,755
Own Kudos:
34,057
 [12]
Given Kudos: 799
Location: Canada
Expert
Expert reply
Posts: 6,755
Kudos: 34,057
 [12]
7
Kudos
Add Kudos
5
Bookmarks
Bookmark this Post
User avatar
JeffTargetTestPrep
User avatar
Target Test Prep Representative
Joined: 04 Mar 2011
Last visit: 05 Jan 2024
Posts: 2,996
Own Kudos:
7,922
 [6]
Given Kudos: 1,646
Status:Head GMAT Instructor
Affiliations: Target Test Prep
Expert
Expert reply
Posts: 2,996
Kudos: 7,922
 [6]
5
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
General Discussion
User avatar
Icecream87
Joined: 23 Sep 2015
Last visit: 02 Aug 2018
Posts: 332
Own Kudos:
343
 [2]
Given Kudos: 72
Location: France
GMAT 1: 690 Q47 V38
GMAT 2: 700 Q48 V38
WE:Real Estate (Mutual Funds and Brokerage)
Products:
GMAT 2: 700 Q48 V38
Posts: 332
Kudos: 343
 [2]
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Answer D
p+ tax = 106%
Price = 530/106 * 100 = 500
105% = 525
She will be saving 5 dollars. It just took me over two minutes, lame
avatar
jvh42
Joined: 23 Apr 2015
Last visit: 25 Nov 2019
Posts: 11
Own Kudos:
9
 [3]
Location: United States
Concentration: Real Estate, Finance
GMAT 1: 670 Q49 V33
GPA: 3.49
GMAT 1: 670 Q49 V33
Posts: 11
Kudos: 9
 [3]
3
Kudos
Add Kudos
Bookmarks
Bookmark this Post
R=Retail Price

Store 1:

R(106/100)=530
R=(530*100)/(106) and recognize 106*5=530
Therefore R=500

Store 2:
500*(105/100)=5*105=$525

Savings=$530-$525=$5 (D)
User avatar
Skywalker18
User avatar
Retired Moderator
Joined: 08 Dec 2013
Last visit: 15 Nov 2023
Posts: 2,052
Own Kudos:
9,684
 [1]
Given Kudos: 171
Status:Greatness begins beyond your comfort zone
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE:Information Technology (Consulting)
Products:
Posts: 2,052
Kudos: 9,684
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Price at which Diana bought a stereo = 530$
Let the retail price = R
Percent of sales tax = 6%
R+.06R = 530
=>1.06R = 530
=> R = 500
Money spent in sales tax = 30$

In the neighboring state , she would have paid sales tax = 5%
Sales tax amount in neighboring state = (5/100)* 500 = 25 $
Diana could have saved = 30 - 25 = 5$

Answer D
User avatar
Abhishek009
User avatar
Board of Directors
Joined: 11 Jun 2011
Last visit: 21 Apr 2025
Posts: 5,965
Own Kudos:
Given Kudos: 463
Status:QA & VA Forum Moderator
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
Posts: 5,965
Kudos: 5,156
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
Diana bought a stereo for $530, which was the retail price plus a 6 percent sales tax.

Let the retail price of the stereo be 100
Diana bought the stereo at 106

Bunuel
in a neighboring state where she would have paid a sales tax of 5 percent?

Price of the stereo in neighboring state is 105

Bunuel
How much money could she have saved if she had bought the stereo at the same retail price in a neighboring state

Savings possible by buying the stereo from the neighboring state is 106 - 105 = 1

Bunuel
Diana bought a stereo for $530, which was the retail price plus a 6 percent sales tax.

We know that when retail price is 106 , price of stereo is $530
When retail price is 1 , price of the stereo is 530/106 = $5

IMHO (D) $5.00
User avatar
Cez005
Joined: 13 Dec 2013
Last visit: 11 Feb 2020
Posts: 96
Own Kudos:
143
 [1]
Given Kudos: 122
Location: United States (NY)
Concentration: General Management, International Business
GMAT 1: 710 Q46 V41
GMAT 2: 720 Q48 V40
GPA: 4
WE:Consulting (Consulting)
Products:
GMAT 2: 720 Q48 V40
Posts: 96
Kudos: 143
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
To find the actual price of the item: 530/106*100=500
Adding 5% tax: 500/100*105= 525
To find the difference: 530-525=5
avatar
JeevesAsk
Joined: 29 Nov 2016
Last visit: 22 Jul 2017
Posts: 14
Own Kudos:
Given Kudos: 86
Schools: DeGroote
Schools: DeGroote
Posts: 14
Kudos: 5
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Icecream87
Answer D
p+ tax = 106%
Price = 530/106 * 100 = 500
105% = 525
She will be saving 5 dollars. It just took me over two minutes, lame


Can somebody refer to me a video on how to simplifiy 530/106 to 500?
what i am doing is
1% of 530 = 5.3
5.3*6= 31.8 ...
530-31.8= 498.2 ...

where am i making the mistake?
User avatar
Kimberly77
Joined: 16 Nov 2021
Last visit: 07 Sep 2024
Posts: 440
Own Kudos:
Given Kudos: 5,899
Location: United Kingdom
GMAT 1: 450 Q42 V34
Products:
GMAT 1: 450 Q42 V34
Posts: 440
Kudos: 42
Kudos
Add Kudos
Bookmarks
Bookmark this Post
JeevesAsk
Icecream87
Answer D
p+ tax = 106%
Price = 530/106 * 100 = 500
105% = 525
She will be saving 5 dollars. It just took me over two minutes, lame


Can somebody refer to me a video on how to simplifiy 530/106 to 500?
what i am doing is
1% of 530 = 5.3
5.3*6= 31.8 ...
530-31.8= 498.2 ...

where am i making the mistake?

Hi JeevesAsk, 530/106 * 100 = 53000/106 = 500

Here you are calculating 1% of 530 = 5.3 ( which is the price with 6% already) when you should calculate with original price of 500 here.
so 1% of 500 = 5
5% of 500 = 5 * 5 = 25

530 - 525 = $5

Hope it make sense.
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 37,371
Own Kudos:
Posts: 37,371
Kudos: 1,010
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Moderators:
Math Expert
102634 posts
PS Forum Moderator
686 posts