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During the four years that Mrs. Lopez owned her car, she fou [#permalink]
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16 Jul 2013, 17:15
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During the four years that Mrs. Lopez owned her car, she found that her total car expenses were $18,000. Fuel and maintenance costs accounted for 1/3 of the total and depreciation accounted for 3/5 of the remainder. The cost of insurance was 3 times the cost of financing, and together these two costs accounted for 1/5 of the total. If the only other expenses were taxes and license fees, then the cost of financing was how much more or less than the cost of taxes and license fees? (A) $1,500 more (B) $1,200 more (C) $100 less (D) $300 less (E) $1,500 less
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Re: During the four years that Mrs. Lopez owned her car, she fou [#permalink]
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16 Jul 2013, 17:55
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OA is D Fuel & Maintenance = 1/3 depreciation = 3/5 of the rest = 3/5*2/3 = 2/5 Insurance = 3 * Financing Insurance + Finance = 1/5 Let Taxes & License = x so compute for x 1/3 + 2/5 + 1/5 + x = 1 x= 1/15 Amount of x = 1/15*18000 = 1200  (1) Now I + F = 1/5*18000 but I = 3F so 4F = 1/5*18000 F= 900  (2) Ans is (2)  (1)...i.e. 300 less
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Re: During the four years that Mrs. Lopez owned her car, she fou [#permalink]
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16 Jul 2013, 19:15
carcass wrote: During the four years that Mrs. Lopez owned her car, she found that her total car expenses were $18,000. Fuel and maintenance costs accounted for 1/3 of the total and depreciation accounted for 3/5 of the remainder. The cost of insurance was 3 times the cost of financing, and together these two costs accounted for 1/5 of the total. If the only other expenses were taxes and license fees, then the cost of financing was how much more or less than the cost of taxes and license fees?
(A) $1,500 more
(B) $1,200 more
(C) $100 less
(D) $300 less
(E) $1,500 less 1. Assume total expenses to be $180 for simplicity and to avoid mistakes in calculation 2.Maintenance cost =$60, depreciation = 3/5(18060) = $72 3. Insurance + financing cost= 1/5(180) i.e., three times financing cost +financing cost =1/5(180) i.e., 4 * financing cost = 1/5(180) = $36 . Therefore financing cost =$9 and Insurance cost = 3*9 = $27 4. Taxes and License fee= 180 (60+72+27+9)=$12 5, We find financing cost to be $3 less than the tax and license fee if the total expenses is $180. 6. But the actual total expenses is $18,000. so financing cost is less than tax and license fee by $300.
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Re: During the four years that Mrs. Lopez owned her car, she found that he [#permalink]
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28 Aug 2015, 18:40
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Hi AbdurRakib, While this question IS wordy, the math behind it is just arithmetic. If you break the prompt into 'pieces', then the work shouldn't be too difficult. The first two sentences tell us that the total car expenses were $18,000, fuel and maintenance costs accounted for 1/3 of THAT total and depreciation accounted for 3/5 of the REMAINDER. TOTAL = $18,000 Fuel/Maint. = (1/3)($18,000) = $6,000 Remainder = $18,000  $6,000 = $12,000 Depreciation = (3/5)($12,000) = $7,200 Next, we're told that Insurance = 3(Financing) Insurance + Financing = (1/5)($18,000) Here, we have a 'system' of equations (2 variables and 2 unique equations), so we can solve for both variables... Insurance + Financing = $3,600 3(Financing + Financing = $3,600 4(Financing) = $3,600 Financing = $900 Insurance + $900 = $3,600 Insurance = $2,700 At this point, we have.... Total = $18,000 Fuel/Maint. = (1/3)($18,000) = $6,000 Depreciation = (3/5)($12,000) = $7,200 Financing = $900 Insurance = $2,700 $6,000 + $7,200 + $900 + $2,700 = $16,800 This leaves $1,200 for the remaining costs, which we're told are the Taxes and Licensing Fees Taxes&Licensing = $1,200 The question asks how much more/less the Financing cost was compared to the Taxes&Licensing.... $900  $1,200 =  $300 = $300 LESS Final Answer: GMAT assassins aren't born, they're made, Rich
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Re: During the four years that Mrs. Lopez owned her car, she found that he [#permalink]
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28 Aug 2015, 23:58
AbdurRakib wrote: During the four years that Mrs. Lopez owned her car, she found that her total car expenses were $18,000. Fuel and maintenance costs accounted for 1/3 of the total and depreciation accounted for 3/5 of the remainder. The cost of insurance was 3 times the cost of financing, and together these two costs accounted for 1/5 of the total. If the only other expenses were taxes and license fees, then the cost of financing was how much more or less than the cost of taxes and license fees?
A. $1,500 more B. $1,200 more C. $100 less D. $300 less E. $1,500 less The best strategy is to assume a convenient number. 300 is a convenient number (avoiding fractions). Out of 300, 100 is F and M costs. Out of the remaining 200, 120 is depreciation. Cost of insurance and financing together is 60 (insurance=45 and financing is 15) Remaining 20 is taxes and licence fees. The difference between financing and taxes is 5 If 300 is the total expenses then $5 less If 18000 is the total expenses then $300 less



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Re: During the four years that Mrs. Lopez owned her car, she fou [#permalink]
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01 Sep 2015, 22:10
Total = 18000 Fuel and maintenance = 1/3 = 6000 Depreciation = (2/3)(3/5) = 12000 (3/5) = 7200 Insurance & Financing is 1/5 of total 18000 (1/5) = 3600 Insurance and Financing are in 3:1 ratio. So, I = 2700 & F = 900 Therefore, total expenditure as of now, 6000 + 7200 + 3600 = 16800, Taxes and License cost will be the remaining, So, 18000  16800 = 1200 then the cost of financing was how much more or less than the cost of taxes and license fees ? Cost of finance = 900 Cost of Tax, License = 1200, Therefore, the difference is 300 less.
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Re: During the four years that Mrs. Lopez owned her car, she fou [#permalink]
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01 Sep 2015, 22:52
carcass wrote: During the four years that Mrs. Lopez owned her car, she found that her total car expenses were $18,000. Fuel and maintenance costs accounted for 1/3 of the total and depreciation accounted for 3/5 of the remainder. The cost of insurance was 3 times the cost of financing, and together these two costs accounted for 1/5 of the total. If the only other expenses were taxes and license fees, then the cost of financing was how much more or less than the cost of taxes and license fees?
(A) $1,500 more
(B) $1,200 more
(C) $100 less
(D) $300 less
(E) $1,500 less Analyse the question while reading each statement. Just manipulate the fractions. During the four years that Mrs. Lopez owned her car, she found that her total car expenses were $18,000. Fuel and maintenance costs accounted for 1/3 of the total  Fuel & M cost is 1/3 of total. So 2/3 of total is left. and depreciation accounted for 3/5 of the remainder.  Depr cost is (3/5) of remainder = (3/5) of (2/3) of total = (2/5) of Total Leftover is (2/5) of (2/3) of total = (4/15) of Total The cost of insurance was 3 times the cost of financing, and together these two costs accounted for 1/5 of the total.  Insur + Fin cost = 1/5 of Total = 3/15 of Total. Leftover cost = 4/15  3/15 = 1/15 of Total Cost of insurance = (3/4)*(1/5) = 3/20 of Total Cost of Fin = 1/20 of Total If the only other expenses were taxes and license fees,  taxes are the leftover 1/15 of Total then the cost of financing was how much more or less than the cost of taxes and license fees  Compare cost of Fin with cost of taxes: 1/15  1/20 = 1/60 of Total Financing cost is 1/60 * 18000 = $300 less than cost of taxes. Answer (D)
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Re: During the four years that Mrs. Lopez owned her car, she fou [#permalink]
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15 Nov 2016, 08:32
carcass wrote: During the four years that Mrs. Lopez owned her car, she found that her total car expenses were $18,000. Fuel and maintenance costs accounted for 1/3 of the total and depreciation accounted for 3/5 of the remainder. The cost of insurance was 3 times the cost of financing, and together these two costs accounted for 1/5 of the total. If the only other expenses were taxes and license fees, then the cost of financing was how much more or less than the cost of taxes and license fees?
(A) $1,500 more
(B) $1,200 more
(C) $100 less
(D) $300 less
(E) $1,500 less Total Exp = 18000 Fuel and maintenance = 6000 ; remaining = 12000 Depreciation = 7200 Cost of Insurance + Cost of Financing = 3600 Financing + 3*Financing = 3600 So, Financing = 900 Cost of License Fee & Tax = 18000  ( 6000 + 7200 + 3600 ) = 1200 So , Cost of financing was $300 less than the cost of taxes and license fees.. Answer will be (D) $ 300 Less
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Re: During the four years that Mrs. Lopez owned her car, she fou [#permalink]
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16 Nov 2016, 08:06
carcass wrote: During the four years that Mrs. Lopez owned her car, she found that her total car expenses were $18,000. Fuel and maintenance costs accounted for 1/3 of the total and depreciation accounted for 3/5 of the remainder. The cost of insurance was 3 times the cost of financing, and together these two costs accounted for 1/5 of the total. If the only other expenses were taxes and license fees, then the cost of financing was how much more or less than the cost of taxes and license fees?
(A) $1,500 more
(B) $1,200 more
(C) $100 less
(D) $300 less
(E) $1,500 less We are given that Mrs. Lopez’s total car expenses during the four years were $18,000. Since fuel and maintenance (F&M) costs accounted for 1/3 of the total expenses: F&M costs = 1/3(18,000) = $6,000. Since depreciation accounted for 3/5 of the remainder: depreciation = 3/5(18,000  6,000) = 3/5 (12,000) = $7,200. Since we don’t know the actual cost of insurance or financing except that the cost of insurance was 3 times the cost of financing, and the two costs together accounted for 1/5 of the total expenses, we can let x = cost of financing and 3x = cost of insurance, and create the following equation: x + 3x = 1/5(18,000) 4x = 3,600 x = 900 So the cost of financing was $900 and the cost of insurance was 3($900) = $2,700. The last expense is taxes and license (T&L) fees, so T&L fees must be the difference between the total expenses and the sum of all the items (F&M, depreciation, insurance, and financing) mentioned above. Thus: T&L fees = 18,000  (6,000 + 7,200 + 900 + 2,700) = 18,000  16,800 = $1,200 Finally, we are asked: “the cost of financing was how much more or less than the cost of taxes and license fees?” Since the cost of financing was $900 and T&L fees were $1,200, the cost of financing is $300 less than that of T&L fees. Answer: D
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