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

 It is currently 25 Apr 2019, 07:03

### 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

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

### Show Tags

25 Aug 2017, 00:28
00:00

Difficulty:

15% (low)

Question Stats:

87% (01:17) correct 13% (01:51) wrong based on 95 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% _________________ 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]

### Show Tags

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]

### Show Tags

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.
Senior PS Moderator
Joined: 26 Feb 2016
Posts: 3386
Location: India
GPA: 3.12
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)
_________________
You've got what it takes, but it will take everything you've got
Senior SC Moderator
Joined: 22 May 2016
Posts: 2653
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]

### Show Tags

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%

_________________
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
Target Test Prep Representative
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 5853
Location: United States (CA)
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%.

_________________

# Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
122 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews