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605-655 (Medium)|   Percent and Interest Problems|   Word Problems|                     
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To find the average price per person excluding the gratuity, we need to subtract the gratuity amount from the total price and then divide it by the number of people.

The total price including the gratuity is $207, which is equal to 100% + 15% = 115% of the average price per person. So, the average price per person would be $207 / 115% = $180.

To find the average price per person excluding the gratuity, we divide $180 by 15 people:

Average price per person = $180 / 15 = $12

Therefore, the answer is (B) $12.
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Let us consider the avg per person to be 'x'

1 . Cost of eating = No of people * x = 15x
2 . Gratuity on bill = 15 % of Cost of eating (ie. bill) = 15/100 * 15x

Therefore
15x + 15*15x/100 = 207
=> x = 12

Therefore avg person cost is 12

IMO B
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GMAT_700
The price of lunch for 15 people was $207 including a 15% gratuity for service. What was the average price per person, EXCLUDING the gratuity?

A. 11.73
B. 12
C. 13.8
D. 14
E. 15.87

15% of basic lunch cost was added to it to get the price of $207. This means the basic lunch cost was multiplied by 23/20 to get 207 (multiplier for 15% increase)

Basic lunch cost * 23/20 = 207

Basic lunch cost = 207 * 20/23

207 is a strange number and this makes me think that it must be divisible by 23. I know 23*10 = 230 so 23*9 is 23 less than that i.e. 207

Basic lunch cost = 180

Avg price per person = 180/15 = 12

Answer (B)

The concept of multiplier for percentages is discussed here: https://youtu.be/HxnsYI1Rws8
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Pretty smart! How do you determine when to use answer choices in the approach itself?
Marshmallow
An easier way to solve this is by backcalculating using the answers. Start at the second highest (i.e. 12) so if it turns out to be too high you can eliminate the higher ones and if it's too low you can eliminate the lower ones.

15 people ate. Assuming $12 each without gratuity, then the bill was 15 * 12 = 180

Now add the gratuity: 15% of 180 = 27 (you can quickly see this by doing 10% + 5% = 18 + 9). So 180 + 27 = 207 and the answer is 12.
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