GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 16 Oct 2019, 12:58

### 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

# If the price of gasoline increases by 25% and Ron intends to spend onl

Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 58381
If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

### Show Tags

15 Mar 2016, 12:40
00:00

Difficulty:

45% (medium)

Question Stats:

67% (02:07) correct 33% (01:35) wrong based on 107 sessions

### HideShow timer Statistics

If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys?

A. 6.66%
B. 8%
C. 10%
D. 12%
E. 12.5%

_________________
Verbal Forum Moderator
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2400
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

### Show Tags

15 Mar 2016, 19:46
1
Let price of original price of gasoline = 10$and let original consumption of gasoline = 10 Amount spend on gasoline originally = 10*10 = 100$

the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline
Increased price of gasoline = 12.5$Now Ron intends to spend on gasoline =1.15*100 = 115$
Consumption of gasoline needs to be = 115/12.5
= 1150/125
= 46/5 = 9.2
Reduction in consumption of gasoline = 10-9.2 = .8
% reduction in consumption of gasoline = .8/10 * 100%
= 8%
_________________
When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
VP
Joined: 05 Mar 2015
Posts: 1012
Re: If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

### Show Tags

14 May 2016, 11:15
1
Bunuel wrote:
If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys?

A. 6.66%
B. 8%
C. 10%
D. 12%
E. 12.5%

Let he consumes 10 ltr RS 10 so he spends Rs 100
As er question he intends to spend 15% more (of 100 in our case)=Rs 115
and price increased by 25% =Rs. 12.5 (10+25% of 10)
let he reduces quantity by X lts. then consumed(new reduced) quantity= 10(1-X/100)
Spending amount=Price of gasoline*Quantity
115=12.5*10(1-X/100)
X=8%
Ans B
Manager
Joined: 30 May 2012
Posts: 198
Location: United States (TX)
Concentration: Finance, Marketing
GPA: 3.3
WE: Information Technology (Consulting)
If the price of gasoline increases by 25% and Ron intends to spend onl  [#permalink]

### Show Tags

08 Sep 2017, 16:02
2
rohit8865 wrote:
Bunuel wrote:
If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys?

A. 6.66%
B. 8%
C. 10%
D. 12%
E. 12.5%

Let he consumes 10 ltr RS 10 so he spends Rs 100
As er question he intends to spend 15% more (of 100 in our case)=Rs 115
and price increased by 25% =Rs. 12.5 (10+25% of 10)
let he reduces quantity by X lts. then consumed(new reduced) quantity= 10(1-X/100)
Spending amount=Price of gasoline*Quantity
115=12.5*10(1-X/100)
X=8%
Ans B

For wondering minds, "Rs" in the solution above is short for "Rupee" - a monetary unit in India.

This is how I solved...

Let the initial cost of gas before the hike be $100/gal Price hike given = 25% => New gas price per gallon is$125

Also given, Ron can only spend 15% more of what he used to afford. It is to be understood from the prompt that he was able to afford a full gallon (which means he used to get 1 gal of gas) before the hike. So, he was able to afford $100 before the hike but now he can only afford 15% more of$100. Therefore, he could only pay $115. You get what you pay, so instead of getting a full gallon of gas, he will now only get 0.92 gal [For$125 you get 1 gal, for $115 - how many? => $$\frac{1}{125}$$*115]. Finally, find the percentage decrease in the amount of gas from before and now. Percentage Decrease =$$\frac{0.92 - 1}{1}$$*100 CEO Status: GMATINSIGHT Tutor Joined: 08 Jul 2010 Posts: 2977 Location: India GMAT: INSIGHT Schools: Darden '21 WE: Education (Education) Re: If the price of gasoline increases by 25% and Ron intends to spend onl [#permalink] ### Show Tags 09 Sep 2017, 00:59 2 1 Bunuel wrote: If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys? A. 6.66% B. 8% C. 10% D. 12% E. 12.5% Let price of gasoline earlier = 100 So price of gasoline Later = 125 (25% higher) Let consumption earlier = 100 So total expense earlier = 100*100 = 10000 New total expense = 11500 (15% higher) New consumption of gasoline = 11500/125 = 92 Now, the consumption has changed from 100 to 92 hence, 8% decrease Answer: Option B _________________ Prosper!!! GMATinsight Bhoopendra Singh and Dr.Sushma Jha e-mail: info@GMATinsight.com I Call us : +91-9999687183 / 9891333772 Online One-on-One Skype based classes and Classroom Coaching in South and West Delhi http://www.GMATinsight.com/testimonials.html ACCESS FREE GMAT TESTS HERE:22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION VP Status: Learning Joined: 20 Dec 2015 Posts: 1006 Location: India Concentration: Operations, Marketing GMAT 1: 670 Q48 V36 GRE 1: Q157 V157 GPA: 3.4 WE: Engineering (Manufacturing) Re: If the price of gasoline increases by 25% and Ron intends to spend onl [#permalink] ### Show Tags 09 Sep 2017, 03:48 Let the consumption be C , price of petrol be X and quantity consumed Y Than we have C=X*Y After price increase we have 1.15C=1.25X*a*Y Where a is the percent of quantity decreased Solving the above two equations we have a=92% of 8 % decrease. _________________ Please give kudos if you find my answers useful Director Joined: 09 Mar 2018 Posts: 996 Location: India Re: If the price of gasoline increases by 25% and Ron intends to spend onl [#permalink] ### Show Tags 18 Feb 2019, 01:17 Bunuel wrote: If the price of gasoline increases by 25% and Ron intends to spend only 15% more on gasoline, by how much percent should he reduce the quantity of gasoline that he buys? A. 6.66% B. 8% C. 10% D. 12% E. 12.5% Initial price =$ 100
Increased price = \$ 125

Initial expenditure = 100
New expenditure = 115

If he wants to reduce the consumption = {(125 - 115)/125} * 100 = 8%

B
_________________
If you notice any discrepancy in my reasoning, please let me know. Lets improve together.

Quote which i can relate to.
Many of life's failures happen with people who do not realize how close they were to success when they gave up.
Re: If the price of gasoline increases by 25% and Ron intends to spend onl   [#permalink] 18 Feb 2019, 01:17
Display posts from previous: Sort by