EncounterGMAT wrote:
On account of Diwali, Maha Electronics(ME) is offering a bumper sale on all latest electronic items, which will be offered for less than the maximum retail price set by the manufacturer. Did Pihu get discount of 50% or more on the retail price if she bought brand X smart phone at the time of this sale?
(1) $300 less than ME's retail price was the sale price for brand X smart phone.
(2) 40%, after rounding to the closest percent, of the maximum retail price of $1500 is the retail price for brand X smart phone at ME
The question is asking for \(\frac{Retail Price - Sale Price}{Sale Price} > 50\)%
(1) Sale Price = Retail Price - $300;
Retail Price - Sale Price = $300
We have no Price information --> INSUFFICIENT
(2) 40% after rounding can equal 39.5% or 40.4%, but does not provide information about the Sale Price. --> INSUFFICIENT
(1), (2)
Sale Price: 39.5%\(* $1,500 < $600\) and 40.4%\(* $1,500 > $600\), therefore:
\(\frac{$300}{< $600} > 50\)% --> YES
\(\frac{$300}{> $600} < 50\)% --> NO
INSUFFICIENT
Answer: E