It is currently 19 Oct 2017, 09:40

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

On a purchase of $120, a store offered a payment plan consisting of a

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

Hide Tags

Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 41893

Kudos [?]: 128870 [0], given: 12183

On a purchase of $120, a store offered a payment plan consisting of a [#permalink]

Show Tags

New post 25 Aug 2017, 00:28
Expert's post
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

97% (00:50) correct 3% (01:51) wrong based on 64 sessions

HideShow timer Statistics

On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%
[Reveal] Spoiler: OA

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 128870 [0], given: 12183

Director
Director
User avatar
G
Joined: 18 Aug 2016
Posts: 511

Kudos [?]: 140 [0], given: 123

GMAT 1: 630 Q47 V29
GMAT ToolKit User Premium Member Reviews Badge
Re: On a purchase of $120, a store offered a payment plan consisting of a [#permalink]

Show Tags

New post 25 Aug 2017, 00:34
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%


Actual price = 120
Payment with interest = 20+12*10 = 140
Interest = 140-120 = 20
% of interest of the purchase price = 20/120 = 1/6 = 16.67%
A
_________________

We must try to achieve the best within us

Thanks
Luckisnoexcuse

Kudos [?]: 140 [0], given: 123

Manager
Manager
User avatar
S
Joined: 27 Dec 2016
Posts: 153

Kudos [?]: 38 [0], given: 192

Concentration: Social Entrepreneurship, Nonprofit
GPA: 3.65
WE: Sales (Consumer Products)
Premium Member CAT Tests
On a purchase of $120, a store offered a payment plan consisting of a [#permalink]

Show Tags

New post 25 Aug 2017, 10:52
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%


- Regular price : $120 and total purchase price with installment : $20 + ($12*10) = $140.
- Thus, we pay $20 more on interest.
- Percentage of this interest : \(\frac{$20}{$140} * 100{%}\) = \(\frac{100{%}}{7}\) = \(16,7{%}\).

A.
_________________

There's an app for that - Steve Jobs.

Kudos [?]: 38 [0], given: 192

BSchool Forum Moderator
User avatar
P
Joined: 26 Feb 2016
Posts: 1454

Kudos [?]: 594 [0], given: 16

Location: India
Concentration: General Management, Leadership
WE: Sales (Retail)
Premium Member CAT Tests
Re: On a purchase of $120, a store offered a payment plan consisting of a [#permalink]

Show Tags

New post 25 Aug 2017, 11:58
The store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10,
the total payment made for the purchase is\(20 + 12 * 10 = 20 + 120 = 140$\)

Therefore he would have paid \(140 - 120 or 20\)$ in interest

Since, we need to find what percent of the purchase price did the customer pay in interest,
it must be \(\frac{20}{120} * 100 = \frac{1}{6} * 100 = 16.7\)%(Option A)
_________________

Stay hungry, Stay foolish

2017-2018 MBA Deadlines

Class of 2020: Rotman Thread | Schulich Thread
Class of 2019: Sauder Thread

Kudos [?]: 594 [0], given: 16

Director
Director
avatar
P
Joined: 22 May 2016
Posts: 813

Kudos [?]: 264 [0], given: 551

On a purchase of $120, a store offered a payment plan consisting of a [#permalink]

Show Tags

New post 25 Aug 2017, 12:18
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%

Subtract the down payment. Find the difference between original amount owed and final amount paid. That's interest. Finally, find percentage required.

Purchase price = $120

Less the $20 down payment =
120 - 20 = $100 to pay off at beginning

Payment total at end is $10/month * 12 months = $120

She had $100 to pay at beginning. She paid $120 by the end.

The difference is interest: $120 - 100 = $20 in interest

$20 is what percent of purchase price $120?

\(\frac{20}{120}\) = \(\frac{1}{6}\) * 100 = 16.66... = 16.7%

Answer A

Kudos [?]: 264 [0], given: 551

Math Forum Moderator
User avatar
D
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 1526

Kudos [?]: 950 [0], given: 72

Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: On a purchase of $120, a store offered a payment plan consisting of a [#permalink]

Show Tags

New post 26 Aug 2017, 09:39
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%


Price of item = 120 $
Total cost to customer = 20$ + 10$*12 = 140$
Interest paid over 12 monthly payments = 20$
Percentage interest = 20/120 * 100%
= 16.67%

Answer A
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Kudos [?]: 950 [0], given: 72

Expert Post
Target Test Prep Representative
User avatar
S
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 1634

Kudos [?]: 838 [0], given: 2

Location: United States (CA)
Re: On a purchase of $120, a store offered a payment plan consisting of a [#permalink]

Show Tags

New post 29 Aug 2017, 17:23
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%


When the customer used the payment plan, he or she paid 20 + 10 x 12 = 140 dollars, which is 20 dollars more than the purchase price. That is, the interest is 20 dollars using the payment plan.

Thus, the interest paid is 20/120 = 1/6 = 16.7%.

Answer: A
_________________

Scott Woodbury-Stewart
Founder and CEO

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Kudos [?]: 838 [0], given: 2

Re: On a purchase of $120, a store offered a payment plan consisting of a   [#permalink] 29 Aug 2017, 17:23
Display posts from previous: Sort by

On a purchase of $120, a store offered a payment plan consisting of a

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


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

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®.