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# Schools A and B are in the same town. Annual fee collected by school A

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Joined: 25 Dec 2018
Posts: 145
Location: India
GMAT 1: 490 Q47 V13
GPA: 2.86
Schools A and B are in the same town. Annual fee collected by school A  [#permalink]

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04 Feb 2019, 08:36
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15% (low)

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84% (02:40) correct 16% (03:43) wrong based on 50 sessions

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Schools A and B are in the same town. Annual fee collected by school A from each student is $6720 which is comprised of basic fee and an additional maintenance fee which is 12% of the basic fee. School B has the same basic fee as school A but its maintenance charge is just 8% of the basic fee. A student studying in school B can save how much more as compared with a student from school A? A.$120
B. $240 C.$360
D. $540 E.$720
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Joined: 09 Mar 2018
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Location: India
Re: Schools A and B are in the same town. Annual fee collected by school A  [#permalink]

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04 Feb 2019, 09:39
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akurathi12 wrote:
Schools A and B are in the same town. Annual fee collected by school A from each student is $6720 which is comprised of basic fee and an additional maintenance fee which is 12% of the basic fee. School B has the same basic fee as school A but its maintenance charge is just 8% of the basic fee. A student studying in school B can save how much more as compared with a student from school A? A.$120
B. $240 C.$360
D. $540 E.$720

Student A
1.12 BF = 6720
BF = 6000

Student B
1.08 BF = 6480

Student A Fee - Student B Fee
240

B
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Re: Schools A and B are in the same town. Annual fee collected by school A  [#permalink]

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04 Feb 2019, 09:40
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School A costs $6720 = 1F + 12/100F, i.e. 112/100F F = 6720*(100/112) = 60*100 = 6000 School B costs 1.08F .01F = 60 so 8*60 = 480, so School B = 6480 6720 - 6480 = 240 Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 8043 Location: United States (CA) Re: Schools A and B are in the same town. Annual fee collected by school A [#permalink] ### Show Tags 06 Feb 2019, 20:01 akurathi12 wrote: Schools A and B are in the same town. Annual fee collected by school A from each student is$6720 which is comprised of basic fee and an additional maintenance fee which is 12% of the basic fee. School B has the same basic fee as school A but its maintenance charge is just 8% of the basic fee. A student studying in school B can save how much more as compared with a student from school A?

A. $120 B.$240
C. $360 D.$540
E. $720 We can let x = the basic fee in school A. Thus, we can create the equation: x + 0.12x = 6720 1.12x = 6720 x = 6720/1.12 x = 6000 Therefore, the maintenance fee in school A is 0.12(6000) = 720. Therefore, the maintenance fee in school B is 0.08(6000) = 480. Since the two schools’ basic fees are the same, a student saves money only by comparing the maintenance fees. By studying in school B, the student can save 720 - 480 = 240 dollars. Answer: B _________________ # 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 If you find one of my posts helpful, please take a moment to click on the "Kudos" button. Math Expert Joined: 02 Aug 2009 Posts: 7954 Re: Schools A and B are in the same town. Annual fee collected by school A [#permalink] ### Show Tags 06 Feb 2019, 20:10 akurathi12 wrote: Schools A and B are in the same town. Annual fee collected by school A from each student is$6720 which is comprised of basic fee and an additional maintenance fee which is 12% of the basic fee. School B has the same basic fee as school A but its maintenance charge is just 8% of the basic fee. A student studying in school B can save how much more as compared with a student from school A?

A. $120 B.$240
C. $360 D.$540
E. $720 Short of time.. You are paying 4% less of (6720-something), so answer should be <$$\frac{4}{100}*6720=268$$ Only 240 is possible as C, D and E are more than that.. A is very less, as we are just looking at 4% of an amount closer to (100-12)% of 6720 Proper method .. Let basic pay be x $$(1+0.12)x=6720.......x=\frac{6720*100}{112}=6000$$ Now basic fee is 6000, so fees at school B = $$(1+0.08)*6000=6480$$ Difference = 6720-6480=240$
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Re: Schools A and B are in the same town. Annual fee collected by school A   [#permalink] 06 Feb 2019, 20:10
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