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

 It is currently 14 Aug 2018, 06:48

### 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: 47898
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:

35% (medium)

Question Stats:

69% (01:37) correct 31% (01:04) wrong based on 69 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: 2104
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
+1 Kudos if you find this post helpful

Director
Joined: 05 Mar 2015
Posts: 983
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: 210
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
1
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
SVP
Joined: 08 Jul 2010
Posts: 2132
Location: India
GMAT: INSIGHT
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
1
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

_________________

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

22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION

VP
Status: Learning
Joined: 20 Dec 2015
Posts: 1219
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.
_________________

Re: If the price of gasoline increases by 25% and Ron intends to spend onl &nbs [#permalink] 09 Sep 2017, 03:48
Display posts from previous: Sort by

# Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.