GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 18 Oct 2019, 04:09

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# The total cost for an Air Conditioner consists of the cost of the Air

Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 58458
The total cost for an Air Conditioner consists of the cost of the Air  [#permalink]

### Show Tags

10 Oct 2018, 04:55
00:00

Difficulty:

35% (medium)

Question Stats:

74% (01:31) correct 26% (01:30) wrong based on 59 sessions

### HideShow timer Statistics

The total cost for an Air Conditioner consists of the cost of the Air Conditioner and the cost of installation. A fixed sales tax of 10% is charged on both the cost of the Air Conditioner and the installation cost. If the cost of the Air Conditioner, excluding sales tax, was $600, what was the total amount for the Air Conditioner and the installation including sales tax? (1) The sales tax on the installation cost was$6.
(2) The total sales tax was $66. _________________ NUS School Moderator Joined: 18 Jul 2018 Posts: 1019 Location: India Concentration: Finance, Marketing WE: Engineering (Energy and Utilities) Re: The total cost for an Air Conditioner consists of the cost of the Air [#permalink] ### Show Tags 10 Oct 2018, 06:06 From the question, Price of AC excluding sales tax = 600$.

Sales tax = 10% of 600. = 60$. From statement 1: Sales tax on installation = 6$ = 0.1(Cost of installation)

Cost of installation = 60$. Total = 660+60 = 720$.
Sufficient.

From statement 2:

Total sales tax = 66$. Sales tax on AC = 60$ (From question.)
Therefore, Sales tax on installation = 6$. Total = 660+60 = 720. Sufficient. D is the answer. _________________ Press +1 Kudos If my post helps! Director Joined: 19 Oct 2013 Posts: 516 Location: Kuwait GPA: 3.2 WE: Engineering (Real Estate) Re: The total cost for an Air Conditioner consists of the cost of the Air [#permalink] ### Show Tags 11 Oct 2018, 02:01 Bunuel wrote: The total cost for an Air Conditioner consists of the cost of the Air Conditioner and the cost of installation. A fixed sales tax of 10% is charged on both the cost of the Air Conditioner and the installation cost. If the cost of the Air Conditioner, excluding sales tax, was$600, what was the total amount for the Air Conditioner and the installation including sales tax?

(1) The sales tax on the installation cost was $6. (2) The total sales tax was$66.

Let the cost of AC be A
The cost of installation be I

(A+I)*10% + (A+I) =(A+I)*1.1 = cost after tax (1)

from statement 1)
$$\frac{10}{100} *I = 6$$ we can find I

then from that we can substitute back in equation (1) we get a sufficient answer.

From statement 2) $$\frac{10}{100} *(A+I) = 66$$
then from that we can find (A+I) and we can substitute back in equation 1. We get a sufficient Answer.

Director
Joined: 19 Oct 2013
Posts: 516
Location: Kuwait
GPA: 3.2
WE: Engineering (Real Estate)
The total cost for an Air Conditioner consists of the cost of the Air  [#permalink]

### Show Tags

11 Oct 2018, 02:03
Afc0892 wrote:
From the question, Price of AC excluding sales tax = 600$. Sales tax = 10% of 600. = 60$.

From statement 1:

Sales tax on installation = 6$= 0.1(Cost of installation) Cost of installation = 60$. << here it should be cost of installation = 60+6
Total = 660+60 = 720$. Sufficient. From statement 2: Total sales tax = 66$. Sales tax on AC = 60$(From question.) Therefore, Sales tax on installation = 6$.

<< here it should be cost of installation = 60+6

Total = 660+60 = 720.
Sufficient.

Afc0892

I think you forgot to multiply 1.1 by 60 in your calculation

You have correctly accounted for the AC inclusive of tax (600*1.1) = 660

However, you have found the cost of installation to be 60 without multiplying it by 1.1%. It should be 66.

Your logic is perfectly fine and the solution is correct. It is just you forgot something.
NUS School Moderator
Joined: 18 Jul 2018
Posts: 1019
Location: India
Concentration: Finance, Marketing
WE: Engineering (Energy and Utilities)
The total cost for an Air Conditioner consists of the cost of the Air  [#permalink]

### Show Tags

11 Oct 2018, 02:06
Salsanousi wrote:
Afc0892 wrote:
From the question, Price of AC excluding sales tax = 600$. Sales tax = 10% of 600. = 60$.

From statement 1:

Sales tax on installation = 6$= 0.1(Cost of installation) Cost of installation = 60$. << here it should be cost of installation = 60+6
Total = 660+60 = 720$. Sufficient. From statement 2: Total sales tax = 66$. Sales tax on AC = 60$(From question.) Therefore, Sales tax on installation = 6$.

<< here it should be cost of installation = 60+6

Total = 660+60 = 720.
Sufficient.

Afc0892

I think you forgot to multiply 1.1 by 60 in your calculation

You have correctly accounted for the AC inclusive of tax (600*1.1) = 660

However, you have found the cost of installation to be 60 without multiplying it by 1.1%. It should be 66.

Your logic is perfectly fine and the solution is correct. It is just you forgot something.

Yes, thank you. Forgot while typing
_________________
Press +1 Kudos If my post helps!
The total cost for an Air Conditioner consists of the cost of the Air   [#permalink] 11 Oct 2018, 02:06
Display posts from previous: Sort by