M08#17 : Retired Discussions [Locked]
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M08#17

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Senior Manager
Status: Do and Die!!
Joined: 15 Sep 2010
Posts: 326
Followers: 1

Kudos [?]: 451 [0], given: 193

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02 Jan 2012, 14:00
Two payment schemes are available for customers in the N'K store. The first scheme includes a downpayment of 20% of the purchase price and 10 monthly payments of 10% each. The second includes a downpayment of 10% and 20 monthly payments of 8% each. If a customer buys a TV for $216, by what percent will he find the first scheme cheaper than the second (approximately)? (A) 14% (B) 27% (C) 30% (D) 34% (E) 35% How to calculate Cost of scheme mentioned in the discussion http://gmatclub.com/forum/payments-algebra-m08q17-57654.html?kudos=1 by HongHu . Thanks _________________ I'm the Dumbest of All !! Magoosh GMAT Instructor Joined: 28 Dec 2011 Posts: 3850 Followers: 1332 Kudos [?]: 6124 [1] , given: 71 Re: M08#17 [#permalink] Show Tags 02 Jan 2012, 16:31 1 This post received KUDOS Expert's post Hi, there! I'm happy to help with this. : First scheme: 20% of 216 = (0.20)(216) =$43.20
10% of 216 = (0.10)(216) = $21.60 Cost = (20% DP) + 10*(10% MP) = 43.20 + 10*21.6 =$259.20

Second scheme

8% of 216 = (0.08)(216) = $17.28 Cost = (10% DP) + 20*(8% MP) = 21.60 + 20*17.28 =$367.20

"By what percent will he find the first scheme cheaper than the second?" The second one (following the word "than") is the whole, and the first one is the part.

Percent = (part/whole)*100 = (259.20/367.20)*100 = 70.588%

The first scheme is 70.588% of the second scheme, so it is 100 - 70.588 = 29.41 = approx. 30%

Does that make it clear from whence all the numbers come? Please let me know if you have any questions.

Mike
_________________

Mike McGarry
Magoosh Test Prep

Senior Manager
Status: Do and Die!!
Joined: 15 Sep 2010
Posts: 326
Followers: 1

Kudos [?]: 451 [0], given: 193

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02 Jan 2012, 16:48
Thanks Mike !!! I made mistake in calculation... ((
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I'm the Dumbest of All !!

Re: M08#17   [#permalink] 02 Jan 2012, 16:48
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M08#17

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