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Ronnie and Bonnie are opposing participants in an online auction.

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Ronnie and Bonnie are opposing participants in an online auction.  [#permalink]

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New post Updated on: 16 Jul 2015, 12:28
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A
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C
D
E

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  25% (medium)

Question Stats:

82% (02:01) correct 18% (03:37) wrong based on 43 sessions

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Ronnie and Bonnie are opposing participants in an online auction. Each has a constant bidding strategy: Ronnie always bids up by raising $40 over any previous bid. Bonnie always bids up by doubling any previous bid. The auction begins with an initial bid by a third player, and progresses as follows: Ronnie bids up first, and Bonnie follows. Ronnie bids up again, and Bonnie follows and raises the bid to a final $600. What was the dollar value of the initial price?

A – $60
B – $70
C – $80
D – $90
E – $100

Originally posted by SwaggyP on 16 Jul 2015, 12:22.
Last edited by ENGRTOMBA2018 on 16 Jul 2015, 12:28, edited 1 time in total.
Edited the question, added the OA
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Re: Ronnie and Bonnie are opposing participants in an online auction.  [#permalink]

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New post 16 Jul 2015, 12:31
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SwaggyP wrote:
Ronnie and Bonnie are opposing participants in an online auction. Each has a constant bidding strategy: Ronnie always bids up by raising $40 over any previous bid. Bonnie always bids up by doubling any previous bid. The auction begins with an initial bid by a third player, and progresses as follows: Ronnie bids up first, and Bonnie follows. Ronnie bids up again, and Bonnie follows and raises the bid to a final $600. What was the dollar value of the initial price?

A – $60
B – $70
C – $80
D – $90
E – $100


Initial bid = p$
Ronnie = p+40
Bonnie = 2p

The sequence is R---> B ---> R -----> B ---> 600

Thus per the sequence we have: p+40, 2(p+40), 2p+80+40 , 2(2p+120)

Now given, 2(2p+120) = 600----> p =90$. Thus D is the correct answer.
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Re: Ronnie and Bonnie are opposing participants in an online auction.  [#permalink]

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New post 16 Jul 2015, 12:39
Engr2012 wrote:
SwaggyP wrote:
Ronnie and Bonnie are opposing participants in an online auction. Each has a constant bidding strategy: Ronnie always bids up by raising $40 over any previous bid. Bonnie always bids up by doubling any previous bid. The auction begins with an initial bid by a third player, and progresses as follows: Ronnie bids up first, and Bonnie follows. Ronnie bids up again, and Bonnie follows and raises the bid to a final $600. What was the dollar value of the initial price?

A – $60
B – $70
C – $80
D – $90
E – $100


Initial bid = p$
Ronnie = p+40
Bonnie = 2p

The sequence is R---> B ---> R -----> B ---> 600

Thus per the sequence we have: p+40, 2(p+40), 2p+80+40 , 2(2p+120)

Now given, 2(2p+120) = 600----> p =90$. Thus D is the correct answer.



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Why do I receive $80 when dividing 360 by 4 equals 90…
Another typical fault of mine.
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Re: Ronnie and Bonnie are opposing participants in an online auction.  [#permalink]

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New post 16 Jul 2015, 13:46
Hi SwaggyP,

This question can be solved rather easily by TESTing THE ANSWERS.

Given the following bidding 'rules':
1) Ronnie raises a prior bid by $40
2) Bonnie doubles a prior bid.

And the pattern:
Initial Bid
Ronnie Bid
Bonnie Bid
Ronnie Bid
Bonnie Bid --> final bid = $600

We can TEST THE ANSWERS...

IF... we start with Answer B: $70....we would have the following progression:

70 --> 110 --> 220 --> 260 --> 520
This result is TOO SMALL (it's supposed to be 600). Thus, we need a larger starting value. Eliminate Answers A and B.

Next, let's TEST Answer D: $90....we would have the following progression:

90 --> 130 --> 260 --> 300 --> 600
This is a MATCH for what we were told, so this MUST be the answer.

Final Answer:

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Re: Ronnie and Bonnie are opposing participants in an online auction.  [#permalink]

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New post 16 Jul 2015, 15:32
You can simply work backwards from the $600, also.
Bonnie's final bid =$600 (this is double the previous bid by Ronnie)
Ronnie's bid = $300 (this was $40 higher than the previous bid)
Bonnie's bid = $260 (this was double the previous bid)
Ronnie's bid = $130 (this was $40 higher than the previous and initial bid)
Initial Bid = $90

Answer D
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Re: Ronnie and Bonnie are opposing participants in an online auction.  [#permalink]

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New post 16 Jul 2015, 21:39
Initial price = x

Ronnie's bid = x+40

Bonnie's bid = 2(x+40) = 2x+80

Ronnie's bid = (2x+80)+40 = 2x+120

Bonnie's bid = 2(2x+120) = 4x+240 = 600

4x = 360

x = 90. Ans (D).
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Re: Ronnie and Bonnie are opposing participants in an online auction.   [#permalink] 16 Jul 2015, 21:39
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