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

It is currently 18 Oct 2019, 17:33

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Mr. Goldstein decides to buy a new car with a sticker price of $45,500

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Manager
Manager
avatar
B
Joined: 13 Sep 2016
Posts: 115
GMAT 1: 800 Q51 V51
Mr. Goldstein decides to buy a new car with a sticker price of $45,500  [#permalink]

Show Tags

New post 18 Oct 2016, 11:20
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

88% (01:30) correct 12% (01:34) wrong based on 46 sessions

HideShow timer Statistics

Mr. Goldstein decides to buy a new car with a sticker price of $45,500. If the sales tax comes out to 5 percent of the purchase price, but Mr. Goldstein is able to negotiate a purchase price that is a 20 percent discount off the sticker price, how much sales tax does Mr. Goldstein pay?

a) $455
b) $910
c) $1560
d) $1820
e) $2275

Please assist with above problem.
Manager
Manager
avatar
Joined: 29 Aug 2008
Posts: 106
Re: Mr. Goldstein decides to buy a new car with a sticker price of $45,500  [#permalink]

Show Tags

New post 18 Oct 2016, 11:24
1
Sticker Price on Car = $45,500

He is going to get 20% Discount on this, so the final price which he is going to pay on which sales tax would be applicable = .8*$45,500

Which on solving gives = $36,400

Sales tax to be paid is 5% on $36,400 = .05*$36400 = $1820

Option D

HTH
EMPOWERgmat Instructor
User avatar
V
Status: GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 15277
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Re: Mr. Goldstein decides to buy a new car with a sticker price of $45,500  [#permalink]

Show Tags

New post 21 Jan 2018, 13:51
Hi All,

The answer choices to this question are 'spread out' enough that you can do some estimation (without having to do every exact calculation).

The starting sticker price on a car is $45,500, which I'll 'round down' to $45,000.
The 20% discount off of THAT price would be: $45,000 - (.2)($45,000) = $45,000 - $9,000 = $36,000
The 5% tax on the $36,000 = (.05)($36,000) = $1800

Since I rounded down the initial car price, the correct answer would be a little more than $1800....

Final Answer:

GMAT assassins aren't born, they're made,
Rich
_________________
Contact Rich at: Rich.C@empowergmat.com
Image


The Course Used By GMAT Club Moderators To Earn 750+

souvik101990 Score: 760 Q50 V42 ★★★★★
ENGRTOMBA2018 Score: 750 Q49 V44 ★★★★★
GMAT Club Bot
Re: Mr. Goldstein decides to buy a new car with a sticker price of $45,500   [#permalink] 21 Jan 2018, 13:51
Display posts from previous: Sort by

Mr. Goldstein decides to buy a new car with a sticker price of $45,500

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne