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# In a certain state, gasoline stations compute the price per

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Manager
Joined: 20 Nov 2009
Posts: 126
In a certain state, gasoline stations compute the price per  [#permalink]

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Updated on: 10 Mar 2014, 23:52
12
00:00

Difficulty:

25% (medium)

Question Stats:

77% (01:25) correct 23% (01:36) wrong based on 257 sessions

In a certain state, gasoline stations compute the price per gallon "p", in dollars, charged at the pump by adding a 4 percent sales tax to the dealer's price per gallon "d", in dollars, and then adding a gasoline tax of $0.18 per gallon. Which of the following gives the dealer's price per gallon "d" in terms of the price per gallon "p" charged at the pump? A. d = p-0.22 B. d = p/1.22 C. d = p/1.04 - 0.18 D. d= (p-0.18)/1.04 E. d = (p-0.04)/1.18 _________________ But there’s something in me that just keeps going on. I think it has something to do with tomorrow, that there is always one, and that everything can change when it comes. http://aimingformba.blogspot.com Originally posted by aiming4mba on 07 Sep 2010, 12:36. Last edited by Bunuel on 10 Mar 2014, 23:52, edited 1 time in total. Edited the question. Math Expert Joined: 02 Sep 2009 Posts: 52431 Re: PS Question [#permalink] ### Show Tags 07 Sep 2010, 12:57 aiming4mba wrote: In a certain state, gasoline stations compute the price per gallon "p", in dollars, charged at the pump by adding a 4 percent sales tax to the dealer's price per gallon "d", in dollars, and then adding a gasoline tax of$0.18 per gallon. Which of the following gives the dealer's price per gallon "d" in terms of the price per gallon "p" charged at the pump?

a. d=p-0.22
b. d=p/1.22
c. d=p/1.04 - 0.18
d. d= p-0.18/1.04
e. d = p-0.04/1.18

Price per gallon $$p$$ equals to $$d+0.04d$$ (dealer's price $$d$$ plus 4%) plus $$0.18$$, so $$p=d+0.04d+0.18$$ --> $$p=1.04d+0.18$$ --> $$d=\frac{p-0.18}{1.04}$$.

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10 Mar 2014, 15:41
Bunuel wrote:
aiming4mba wrote:
In a certain state, gasoline stations compute the price per gallon "p", in dollars, charged at the pump by adding a 4 percent sales tax to the dealer's price per gallon "d", in dollars, and then adding a gasoline tax of $0.18 per gallon. Which of the following gives the dealer's price per gallon "d" in terms of the price per gallon "p" charged at the pump? a. d=p-0.22 b. d=p/1.22 c. d=p/1.04 - 0.18 d. d= p-0.18/1.04 e. d = p-0.04/1.18 Price per gallon $$p$$ equals to $$d+0.04d$$ (dealer's price $$d$$ plus 4%) plus $$0.18$$, so $$p=d+0.04d+0.18$$ --> $$p=1.04d+0.18$$ --> $$d=\frac{p-0.18}{1.04}$$. Answer: D. I picked C. I divided the 1.04 with P before subtracting 0.18. What rule is there that I am unaware of here? SVP Status: The Best Or Nothing Joined: 27 Dec 2012 Posts: 1823 Location: India Concentration: General Management, Technology WE: Information Technology (Computer Software) Re: PS Question [#permalink] ### Show Tags 10 Mar 2014, 18:53 nevermoreflow wrote: Bunuel wrote: aiming4mba wrote: In a certain state, gasoline stations compute the price per gallon "p", in dollars, charged at the pump by adding a 4 percent sales tax to the dealer's price per gallon "d", in dollars, and then adding a gasoline tax of$0.18 per gallon. Which of the following gives the dealer's price per gallon "d" in terms of the price per gallon "p" charged at the pump?

a. d=p-0.22
b. d=p/1.22
c. d=p/1.04 - 0.18
d. d= p-0.18/1.04
e. d = p-0.04/1.18

Price per gallon $$p$$ equals to $$d+0.04d$$ (dealer's price $$d$$ plus 4%) plus $$0.18$$, so $$p=d+0.04d+0.18$$ --> $$p=1.04d+0.18$$ --> $$d=\frac{p-0.18}{1.04}$$.

I picked C. I divided the 1.04 with P before subtracting 0.18. What rule is there that I am unaware of here?

Substraction has to be done first, & then the whole term to be divided by 1.04
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Senior Manager
Joined: 15 Oct 2015
Posts: 311
Concentration: Finance, Strategy
GPA: 3.93
WE: Account Management (Education)
In a certain state, gasoline stations compute the price per  [#permalink]

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18 Dec 2015, 05:18
ok lemme offer my 6 pence. Answer is D.

Why border ourselves solving formulars when our aim isn't to become Enstein but to pick the right answer.
we can always solve confusing questions by picking a simple number. the simplest number here is one so we don't do any Enstein level calculation.
let dealers price (d) be 1. so adding 4% to dealers price is d+ 4% of d. i.e. 1 + 4% of 1 which is 1 + 0.04. then add 0.18 to the value.
Now 1.04 + 0.18. this is now 1.22. you have the gasoline stations price (p) as 1.22 dollars.
Now sub 1.22 in the options to know which option gave you d = 1. d must equal 1 because you earlier picked 1 as the value of d in the question.

PS: always remember to start from E upwards.
thank you.
Manager
Joined: 24 Oct 2013
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Location: India
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Re: In a certain state, gasoline stations compute the price per  [#permalink]

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26 Sep 2016, 21:51
question stem can be written as p = d + 4% of d +0.18
=> p = d(1+0.04)+0.18
=> p-0.18 = d(1+0.04)
d = p-018 /(1.04)
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Joined: 24 Dec 2016
Posts: 2
Re: In a certain state, gasoline stations compute the price per  [#permalink]

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24 Dec 2016, 23:28
The problem states "...then adding a gasoline tax of $0.18 per gallon" So, why is this not P = 1.04d + 0.18d instead of P = 1.04d + 0.18 Please help! Thanks Coolfool Math Expert Joined: 02 Sep 2009 Posts: 52431 Re: In a certain state, gasoline stations compute the price per [#permalink] ### Show Tags 25 Dec 2016, 01:05 CoolFool wrote: The problem states "...then adding a gasoline tax of$0.18 per gallon"

So, why is this not P = 1.04d + 0.18d instead of P = 1.04d + 0.18

Thanks

Coolfool

Because p in the solutions above is already the price per gallon (the price of ONE gallon). Please re-read the solutions above.

Hope it helps.
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Re: In a certain state, gasoline stations compute the price per  [#permalink]

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01 Apr 2018, 10:02
Hi All,

This question can be solved by TESTing VALUES.

P = Price per gallon CHARGED
D = Price per gallon for the Dealer

We're told that the Dealer price has a 4% tax AND 18 cents per gallon added on.

So, I'm going to pick a nice round number for D.

D = $10 P =$10 +4%($10) + 18 cents = 10.40 + .18 = 10.58 Now, we plug in D = 10 and P = 10.58 into the answer choices; there's only one answer that matches... Final Answer: GMAT assassins aren't born, they're made, Rich _________________ 760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com # Rich Cohen Co-Founder & GMAT Assassin Special Offer: Save$75 + GMAT Club Tests Free
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Re: In a certain state, gasoline stations compute the price per  [#permalink]

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26 Nov 2018, 10:40
Top Contributor
aiming4mba wrote:
In a certain state, gasoline stations compute the price per gallon "p", in dollars, charged at the pump by adding a 4 percent sales tax to the dealer's price per gallon "d", in dollars, and then adding a gasoline tax of $0.18 per gallon. Which of the following gives the dealer's price per gallon "d" in terms of the price per gallon "p" charged at the pump? A. d = p-0.22 B. d = p/1.22 C. d = p/1.04 - 0.18 D. d= (p-0.18)/1.04 E. d = (p-0.04)/1.18 In a certain state, gasoline stations compute the price per gallon "p", in dollars, charged at the pump by adding a 4 percent sales tax to the dealer's price per gallon "d", in dollars . . . We can write: p = d + 4% of d = d + 0.04d = 1.04d So, we have: p = 1.04d . . . and then adding a gasoline tax of$0.18 per gallon.
We get: p = 1.04d + 0.18

Which of the following gives the dealer's price per gallon "d" in terms of the price per gallon "p" charged at the pump?
We need to take p = 1.04d + 0.18 and solve for d

Take: p = 1.04d + 0.18
Subtract 0.18 from both sides to get: p - 0.18 = 1.04d
Divide both sides by 1.04 to get: (p - 0.18)/1.04 = d

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Re: In a certain state, gasoline stations compute the price per &nbs [#permalink] 26 Nov 2018, 10:40
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