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Max purchased a guitar for a total of $624,which consisted of the pric
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24 Jun 2017, 03:09
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Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ? (1) The price of the guitar that Max purchased was less than $602. (2) The sales tax for the guitar that Max purchased was less than $30.
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Max purchased a guitar for a total of $624,which consisted of the pric
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Updated on: 10 Dec 2019, 14:16
AbdurRakib wrote: Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ?
(1) The price of the guitar that Max purchased was less than $602.
(2) The sales tax for the guitar that Max purchased was less than $30. Target question: Was the sales tax rate greater than 3 percent? Given: Max purchased a guitar for a total of $624, which consisted of the price of the guitar and the sales tax. Statement 1: The price of the guitar that Max purchased was less than $602. Let's see what would happen if the sales tax were EXACTLY 3% 1% of $602 = $6.02 So, 3% of $602 ≈ $18 So with a sales tax of EXACTLY 3%, the tax would be $18 This means the TOTAL price would equal $602 + $18 = $620 However, we're told that Max paid $624. Therefore, the tax rate must be GREATER than 3% NOTE: we're actually told that the price of the guitar was less than $602. This doesn't matter. If the price of the guitar is less than $602, then getting the TOTAL cost to $624, would require an even greater sales tax. So, we can be certain that the tax rate is GREATER than 3% Since we can answer the target question with certainty, statement 1 is SUFFICIENT Statement 2: The sales tax for the guitar that Max purchased was less than $30. Let's test some possible cases. Case a: the sales tax is $24. This means the pretax price = $624  $24 = $600. We know that 1% of $600 is $6, which means 3% of $600 is $18. Since the actual sales tax (in this scenario) is $24, we can conclude that the tax rate is GREATER than 3% Case b: the sales tax is $4. This means the pretax price = $624  $4 = $620. We know that 1% of $620 is $6.20, which means 3% of $620 is $18.60. Since the actual sales tax (in this scenario) is $4, we can conclude that the tax rate is LESS than 3% Since we cannot answer the target question with certainty, statement 2 is NOT SUFFICIENT Answer: A Cheers, Brent
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Originally posted by GMATPrepNow on 12 Jan 2018, 08:54.
Last edited by GMATPrepNow on 10 Dec 2019, 14:16, edited 1 time in total.




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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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03 Jul 2017, 04:48
If price of guitar is P, and sales tax on it is S. Total price including sales tax = P + S = $624. We have to answer whether S > 3% of P or whether S > 0.03P
Statement 1. Lets say if P = $602, then with 3% sales tax, total price = 602 + 0.03*602 = 618.06, which is < 624 So that means even at price of 602, we need to apply sales tax of greater than 3% so as to reach the required amount of 624. Thus when the price is less than 602, definitely for every such case sales tax would need to be higher than 3% to reach the required amount of 624. Thus sufficient.
Statement 2. Sales tax is < $30. Sales tax could be $4, thus P = $620, here tax is < 3% But sales tax could be $24, thus P = $600, here tax is > 3% Clearly the statement is not sufficient.
Hence A answer




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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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24 Jun 2017, 03:22
Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ?
(1) The price of the guitar that Max purchased was less than $602.
(2) The sales tax for the guitar that Max purchased was less than $30.
Solution:
Tricky one. Be aware of the trap.
Statement 1: First calculate what's 3% of 624. It is 3x6.24=18.72. The difference between C.P of guitar and Cost paid is 624602=22. Therefore it is clear that the sales tax rate is greater than 3%.
Statement 2: We don't know the exact value of the sales tax. Though it is lesser than 30, it can be lesser,equal or greater than 3%(18.72). Insufficient.
Therefore, the answer is Option A.



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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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24 Jun 2017, 03:24
AbdurRakib wrote: Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ?
(1) The price of the guitar that Max purchased was less than $602.
(2) The sales tax for the guitar that Max purchased was less than $30. (1) The price of the guitar that Max purchased was less than $602.
Maximum price of guitar can be 601. therefore sales tax price would be \(624  601 = 23\)
Minimum sales tax percent \(= \frac{23}{624}*100 = 3.6\)%.
Any reduction in the price of guitar will increase the sales tax price, ie; numerator will increase and hence the sales tax percent will also increase. Therefore sales tax rate is greater than 3%.  I is Sufficient.
(2) The sales tax for the guitar that Max purchased was less than $30.
Maximum sales price would be $29 (less than $30). Therefore Sales price rate \(= \frac{29}{624} * 100 = 4.6\)%
or
If sales price is $1. Sales price rate \(= \frac{1}{624} * 100 = 0.16\)%
(2) gives multiple values of sales price rate. II is Not Sufficient.
Only I alone is Sufficient. Answer (A)



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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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17 Nov 2017, 12:40
AbdurRakib wrote: Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ?
(1) The price of the guitar that Max purchased was less than $602.
(2) The sales tax for the guitar that Max purchased was less than $30. We are given that Max purchased a guitar for a total of $624, which was the price of the guitar and the sales tax. If we let the price of the guitar = p and n = the tax rate, then we have: 624 = p + (n/100)p 624 = p(1 + n/100) 624 = p[(100 + n)/100] 62,400 = p[(100 + n) 62,400/(100 + n) = p We need to determine whether n > 3. Statement One Alone: The price of the guitar that Max purchased was less than $602. Since p < 602 and 62,400/(100 + n) = p, we have: 62,400/(100 + n) < 602 62,400 < 60,200 + 602n 2,200 < 602n 2,200/602 ≈ 3.65 < n Since n is greater than 3.65, the sales tax is greater than 3%. Statement Two Alone: The sales tax for the guitar that Max purchased was less than $30. Statement two alone is not sufficient to answer the question. For instance, if the tax was $0, then the tax rate was less than 3%; however, if the tax was $24, the price of the guitar would be $600, and the tax rate would be 24/600 = 4/100 = 4%, which is greater than 3%. Answer: A
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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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07 Jan 2018, 08:17
sashiim20 wrote: AbdurRakib wrote: Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ?
(1) The price of the guitar that Max purchased was less than $602.
(2) The sales tax for the guitar that Max purchased was less than $30. (1) The price of the guitar that Max purchased was less than $602.
Maximum price of guitar can be 601. therefore sales tax price would be \(624  601 = 23\)
Minimum sales tax percent \(= \frac{23}{624}*100 = 3.6\)%.
Any reduction in the price of guitar will increase the sales tax price, ie; numerator will increase and hence the sales tax percent will also increase. Therefore sales tax rate is greater than 3%.  I is Sufficient.
(2) The sales tax for the guitar that Max purchased was less than $30.
Maximum sales price would be $29 (less than $30). Therefore Sales price rate \(= \frac{29}{624} * 100 = 4.6\)%
or
If sales price is $1. Sales price rate \(= \frac{1}{624} * 100 = 0.16\)%
(2) gives multiple values of sales price rate. II is Not Sufficient.
Only I alone is Sufficient. Answer (A)Though Answer is A, the sale tax is calculated on the price of guitar ie. 601 or less. It cant be calculated in total. Total = Price + sale tax. Am I wrong ?



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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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12 Mar 2018, 20:54
amanvermagmat wrote: If price of guitar is P, and sales tax on it is S. Total price including sales tax = P + S = $624. We have to answer whether S > 3% of P or whether S > 0.03P
Statement 1. Lets say if P = $602, then with 3% sales tax, total price = 602 + 0.03*602 = 618.06, which is < 624 So that means even at price of 602, we need to apply sales tax of greater than 3% so as to reach the required amount of 624. Thus when the price is less than 602, definitely for every such case sales tax would need to be higher than 3% to reach the required amount of 624. Thus sufficient.
Statement 2. Sales tax is < $30. Sales tax could be $4, thus P = $620, here tax is < 3% But sales tax could be $24, thus P = $600, here tax is > 3% Clearly the statement is not sufficient.
Hence A answer I have no idea why I didn't attempt the problem this way. Thank you and +1 kudos!



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Max purchased a guitar for a total of $624,which consisted of the pric
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08 Oct 2018, 22:57
sashiim20 wrote: AbdurRakib wrote: Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ?
(1) The price of the guitar that Max purchased was less than $602.
(2) The sales tax for the guitar that Max purchased was less than $30. (1) The price of the guitar that Max purchased was less than $602.
Maximum price of guitar can be 601. therefore sales tax price would be \(624  601 = 23\)
Minimum sales tax percent \(= \frac{23}{624}*100 = 3.6\)%.
Any reduction in the price of guitar will increase the sales tax price, ie; numerator will increase and hence the sales tax percent will also increase. Therefore sales tax rate is greater than 3%.  I is Sufficient.
(2) The sales tax for the guitar that Max purchased was less than $30.
Maximum sales price would be $29 (less than $30). Therefore Sales price rate \(= \frac{29}{624} * 100 = 4.6\)%
or
If sales price is $1. Sales price rate \(= \frac{1}{624} * 100 = 0.16\)%
(2) gives multiple values of sales price rate. II is Not Sufficient.
Only I alone is Sufficient. Answer (A)U are calculating the sales tax percent on 642. It has to be calculated on the PRICE BEFORE THE SALEX TAX was applied. Example  In ur statement one.. It should be Minimum sales tax percent = 23/ 601 * 100



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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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12 Dec 2018, 08:07
@amanvermaggmat Thank you so much! I loved the way you explained it!



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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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02 Dec 2019, 00:20
AbdurRakib wrote: Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ?
(1) The price of the guitar that Max purchased was less than $602.
(2) The sales tax for the guitar that Max purchased was less than $30. Responding to a pm: Total = 624 = Guitar Price + Sales Tax (1) The price of the guitar that Max purchased was less than $602. Let's say the price of the guitar is actually 602 which means tax is $22. 1% of 602 is 6.02 so 3% is $18.06. In this case, the tax is already more than 3%. If the price of the guitar is lower than 602, the tax will always be more than 3%. Sufficient. (2) The sales tax for the guitar that Max purchased was less than $30. Let's say the sales tax was exactly $30. In that case, the price of guitar is $594 1% of 594 is 5.94 so 3% is about $18. But the tax is $30 which is much more than 3%. The tax is lower than $30. Say, it is $10. In that case, cost of guitar is $614 and the tax is less than 3%. So here, the tax may be more than 3% or less than 3%. Not sufficient. Answer (A)
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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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10 Dec 2019, 08:14
GMATPrepNow wrote: AbdurRakib wrote: Max purchased a guitar for a total of $624,which consisted of the price of the guitar and the sales tax.Was the sales tax rate greater than 3 percent ?
(1) The price of the guitar that Max purchased was less than $602.
(2) The sales tax for the guitar that Max purchased was less than $30. Target question: Was the sales tax rate greater than 3 percent? Given: Max purchased a guitar for a total of $624, which consisted of the price of the guitar and the sales tax. Statement 1: The price of the guitar that Max purchased was less than $602. Let's see what would happen if the sales tax were EXACTLY 3% 1% of $602 = $6.02 So, 3% of $602 ≈ $18 So with a sales tax of EXACTLY 3%, the tax would be $18 This means the TOTAL price would equal $602 + $18 = $620 However, we're told that Max paid $624. Therefore, the tax rate must be GREATER than 3% NOTE: we're actually told that the price of the guitar was less than $602. This doesn't matter. If the price of the guitar is less than $602, then getting the TOTAL cost to $624, would require an even greater sales tax. So, we can be certain that the tax rate is GREATER than 3% Since we can answer the target question with certainty, statement 1 is SUFFICIENT Statement 2: The sales tax for the guitar that Max purchased was less than $30. Let's test some possible cases. Case a: the sales tax is $24. This means the pretax price = $624  $24 = $600. We know that 1% of $600 is $6, which means 3% of $600 is $18. Since the actual sales tax (in this scenario) is $29, we can conclude that the tax rate is GREATER than 3% Case b: the sales tax is $4. This means the pretax price = $624  $4 = $620. We know that 1% of $620 is $6.20, which means 3% of $620 is $18.60. Since the actual sales tax (in this scenario) is $4, we can conclude that the tax rate is LESS than 3% Since we cannot answer the target question with certainty, statement 2 is NOT SUFFICIENT Answer: A Cheers, Brent GMATPrepNowHi Brent, The $29 seems like a typo in the highlighted part to me. Should it not be be $24? Let us know if that is the case. Warm Regards, Pritishd
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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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10 Dec 2019, 14:17
Pritishd wrote: GMATPrepNowHi Brent, The $29 seems like a typo in the highlighted part to me. Should it not be be $24? Let us know if that is the case. Warm Regards, Pritishd Good catch. That was, indeed, a typo. I have corrected the error. Thanks! Kudos for you!!! Cheers, Brent
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Re: Max purchased a guitar for a total of $624,which consisted of the pric
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