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

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Manager
Joined: 25 Dec 2018
Posts: 148
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, 07:36
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Difficulty:

15% (low)

Question Stats:

90% (02:35) correct 10% (04:02) wrong based on 29 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
VP
Joined: 09 Mar 2018
Posts: 1001
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, 08:39
1
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, 08:40
1
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: 4947 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, 19:01 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 GMAT Quant Self-Study Course 500+ lessons 3000+ practice problems 800+ HD solutions Math Expert Joined: 02 Aug 2009 Posts: 7334 Re: Schools A and B are in the same town. Annual fee collected by school A [#permalink] ### Show Tags 06 Feb 2019, 19:10 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, 19:10
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