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06 Feb 2018, 02:08
00:00

Difficulty:

15% (low)

Question Stats:

92% (00:46) correct 8% (01:03) wrong based on 33 sessions

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Mr. Johnson grosses $2,000 per month from his mail-order business. If 40 percent of that amount goes for business expenses and 10 percent of the remainder is reinvested in the business, how much of the gross receipts is reinvested in the business? (A)$80

(B) $100 (C)$110

(D) $120 (E)$200

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Mr. Johnson grosses $2,000 per month from his mail-order business. If [#permalink] Show Tags 06 Feb 2018, 02:13 Bunuel wrote: Mr. Johnson grosses$2,000 per month from his mail-order business. If 40 percent of that amount goes for business expenses and 10 percent of the remainder is reinvested in the business, how much of the gross receipts is reinvested in the business?

(A) $80 (B)$100

(C) $110 (D)$120

(E) $200 The trick to solving this problem is to understand that the re-investment in the business is 10% of the remainder and not of the whole. The remainder after 40% of the total amount is 60, whose 10% is 6. Therefore, the amount re-invested in the business is 6% of 2000 or $$0.6*2000 = 120$$(Option D) _________________ You've got what it takes, but it will take everything you've got Target Test Prep Representative Status: Head GMAT Instructor Affiliations: Target Test Prep Joined: 04 Mar 2011 Posts: 2830 Re: Mr. Johnson grosses$2,000 per month from his mail-order business. If  [#permalink]

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12 Feb 2018, 16:12
Bunuel wrote:
Mr. Johnson grosses $2,000 per month from his mail-order business. If 40 percent of that amount goes for business expenses and 10 percent of the remainder is reinvested in the business, how much of the gross receipts is reinvested in the business? (A)$80

(B) $100 (C)$110

(D) $120 (E)$200

We see that his business expenses are 2,000 x 0.4 = $800. Therefore, the remainder is$1,200, and 10 percent of that is 1,200 x 0.1 = $120. Thus,$120 is reinvested in the business.

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