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25 Aug 2017, 00:28
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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% _________________ Current Student Joined: 18 Aug 2016 Posts: 619 Concentration: Strategy, Technology GMAT 1: 630 Q47 V29 GMAT 2: 740 Q51 V38 Re: On a purchase of$120, a store offered a payment plan consisting of a  [#permalink]

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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 Manager Joined: 27 Dec 2016 Posts: 232 Concentration: Marketing, Social Entrepreneurship GPA: 3.65 WE: Marketing (Education) On a purchase of$120, a store offered a payment plan consisting of a  [#permalink]

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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.
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Re: On a purchase of $120, a store offered a payment plan consisting of a [#permalink] Show Tags 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)
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On a purchase of $120, a store offered a payment plan consisting of a [#permalink] Show Tags 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 _________________ Listen, are you breathing just a little, and calling it a life? -- Mary Oliver For practice SC questions with official explanations that were posted and moderated by the SC Team, go to SC Butler here: https://gmatclub.com/forum/project-sc-butler-get-2-sc-questions-everyday-281043.html Verbal Forum Moderator Status: Greatness begins beyond your comfort zone Joined: 08 Dec 2013 Posts: 2259 Location: India Concentration: General Management, Strategy Schools: Kelley '20, ISB '19 GPA: 3.2 WE: Information Technology (Consulting) Re: On a purchase of$120, a store offered a payment plan consisting of a  [#permalink]

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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%

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Re: On a purchase of $120, a store offered a payment plan consisting of a [#permalink] Show Tags 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%.

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