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

 It is currently 19 Jun 2018, 11:08

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# M20-06

Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 46167

### Show Tags

16 Sep 2014, 01:07
00:00

Difficulty:

15% (low)

Question Stats:

86% (01:00) correct 14% (01:42) wrong based on 109 sessions

### HideShow timer Statistics

Previously, all owners of an Electra card could receive a 6% discount on any item they purchased at an Electra supermarket. If as a result of inflation, however, the price of all items at the Electra supermarket rose by 20% while the dollar amount of the discount did not change for any item, which of the following represents the new discount as a percent of an item's price?

A. 4.0
B. 4.5
C. 4.8
D. 5.0
E. 5.5

_________________
Math Expert
Joined: 02 Sep 2009
Posts: 46167

### Show Tags

16 Sep 2014, 01:07
1
Official Solution:

Previously, all owners of an Electra card could receive a 6% discount on any item they purchased at an Electra supermarket. If as a result of inflation, however, the price of all items at the Electra supermarket rose by 20% while the dollar amount of the discount did not change for any item, which of the following represents the new discount as a percent of an item's price?

A. 4.0
B. 4.5
C. 4.8
D. 5.0
E. 5.5

Say the price of one particular item at the supermarket was $100. So, the discount given on this item was$6.

After the price increase the price of this item is $120 but the discount is still$6, which now is $$\frac{6}{120}*100=5 \%$$.

_________________
Intern
Joined: 19 Sep 2017
Posts: 1

### Show Tags

20 Sep 2017, 04:13
Using smart numbers made it fairly easy.

P = 100
Discount = 6% = 6

New Price = 100*1,2 = 120
-> 6/120 = 5%

Cheers.
Intern
Status: Don't watch the clock,Do what it does, Keep Going.
Joined: 10 Jan 2017
Posts: 45

### Show Tags

20 Sep 2017, 08:01
let the SP be x (initially) discount= 6%
After discount, SP= .94x Change= .06x
Now, 20% inflation means New SP=1.2x
Question provides that change remains the same = .06x
1.2x-.06x=1.14x
Change percent= (1.2x-1.14x)/1.2x*100= 5 %
Hence ans - D
Re: M20-06   [#permalink] 20 Sep 2017, 08:01
Display posts from previous: Sort by

# M20-06

Moderators: chetan2u, Bunuel

 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®.