Last visit was: 14 Sep 2024, 06:49 It is currently 14 Sep 2024, 06:49
Toolkit
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

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.

# Diana bought a stereo for \$530, which was the retail price plus a 6

SORT BY:
Tags:
Show Tags
Hide Tags
Math Expert
Joined: 02 Sep 2009
Posts: 95503
Own Kudos [?]: 658477 [34]
Given Kudos: 87257
GMAT Club Legend
Joined: 12 Sep 2015
Posts: 6803
Own Kudos [?]: 31311 [10]
Given Kudos: 799
Target Test Prep Representative
Joined: 04 Mar 2011
Affiliations: Target Test Prep
Posts: 3036
Own Kudos [?]: 6833 [6]
Given Kudos: 1646
General Discussion
Senior Manager
Joined: 23 Sep 2015
Posts: 333
Own Kudos [?]: 329 [2]
Given Kudos: 72
Location: France
GMAT 1: 690 Q47 V38
GMAT 2: 700 Q48 V38
WE:Real Estate (Mutual Funds and Brokerage)
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
1
Kudos
1
Bookmarks
p+ tax = 106%
Price = 530/106 * 100 = 500
105% = 525
She will be saving 5 dollars. It just took me over two minutes, lame
Intern
Joined: 23 Apr 2015
Posts: 11
Own Kudos [?]: 9 [3]
Given Kudos: 0
Location: United States
Concentration: Real Estate, Finance
GMAT 1: 670 Q49 V33
GPA: 3.49
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
3
Kudos
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)
Retired Moderator
Joined: 08 Dec 2013
Status:Greatness begins beyond your comfort zone
Posts: 2082
Own Kudos [?]: 9105 [1]
Given Kudos: 171
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE:Information Technology (Consulting)
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
1
Kudos
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\$

Board of Directors
Joined: 11 Jun 2011
Status:QA & VA Forum Moderator
Posts: 6046
Own Kudos [?]: 4822 [0]
Given Kudos: 463
Location: India
GPA: 3.5
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
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
Manager
Joined: 13 Dec 2013
Posts: 100
Own Kudos [?]: 130 [1]
Given Kudos: 122
Location: United States (NY)
GMAT 1: 710 Q46 V41
GMAT 2: 720 Q48 V40
GPA: 4
WE:Consulting (Consulting)
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
1
Kudos
To find the actual price of the item: 530/106*100=500
To find the difference: 530-525=5
Intern
Joined: 29 Nov 2016
Posts: 14
Own Kudos [?]: 5 [0]
Given Kudos: 86
Schools: DeGroote
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
Icecream87
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?
Senior Manager
Joined: 16 Nov 2021
Posts: 467
Own Kudos [?]: 28 [0]
Given Kudos: 5901
Location: United Kingdom
GMAT 1: 450 Q42 V34
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
Icecream87
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.
Non-Human User
Joined: 09 Sep 2013
Posts: 34832
Own Kudos [?]: 878 [0]
Given Kudos: 0
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
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.
Re: Diana bought a stereo for \$530, which was the retail price plus a 6 [#permalink]
Moderator:
Math Expert
95503 posts