A bank customer borrowed $10,000, but received y dollars les

Question

A bank customer borrowed $10,000, but received y dollars less than this due to discounting. If there was a separate $25 service charge, then, in terms of y, the service charge was what fraction of the amount that the customer received?

A. 25/(10,000 - y)
B. 25/(10,000 - 25y)
C. 25y/(10,000 - y)
D. (y - 25)/(10,000 - y)
E. 25/(10,000 - (y - 25))

A. 25/(10,000 - y)
B. 25/(10,000 - 25y)
C. 25y/(10,000 - y)
D. (y - 25)/(10,000 - y)
E. 25/(10,000 - (y - 25))

Bunuel · Accepted Answer

The amount of money the customer received was (10,000 - y) dollars. The $25 service charge as a fraction of the amount received was, therefore, 25/(10,000 - y).

Answer: A.

vivekvijayan · Answer

Should the question be framed a little differently?
I misinterpreted the question and thought that the 25$ were in addition to Y dollars and selected E

Vetrik · Answer

Vivek...even i that case the denominator would have been 10000-y-25 and not 10000-(y-25)

AliciaSierra · Answer

I too thought received amount should be 10,000-y-25.
Service charge as a fraction of received amount should be  \frac{25}{(10000-y-25)} . 
As I could not find this answer in any option, I selected option A, thinking 10000-y-25 is approximate equal to 10000-y.

Regards,
Ammu

jaspreets · Answer

Ok i understood the amount received is 10,000-y and service charge is $25, however ,why 25 is in numerator and why received amount is in the denominator, could someone pls tell me the logic. Thank You.

Bunuel · Answer

Read the question carefully: in terms of y, the service charge was what   FRACTION   of the amount that the customer received?

jaspreets · Answer

Thanks,understood now

AliciaSierra · Answer

won't the amount received be 10000-y-25 ?

Bunuel · Answer

No, it would be 1000 - y: A bank customer borrowed $10,000,  but received y dollars less .

muthappashivani · Answer

I am still confused why is the amount finally received be 10000-y-25?? Than you

AliciaSierra · Answer

I thought amount received will be "amount borrowed - y dollar - service charge".
If I have to pay service charges then I may consider in hand money be Borrowed- service charges.

Regards,
Amm

Bunuel · Answer

The stem clearly says that "A bank  customer  borrowed $10,000, but  received y dollars less ".

ScottTargetTestPrep · Answer

The customer received 10000 - y dollars. Therefore, the service charge was 25/(10000 - y) of the amount that the customer received.

Answer: A

ggvaram · Answer

I also got A, because if you did 25/10000-y-25 no answers corresponded. The stem says: borrowed 10k but received y dollars less. Then it continues with "IF there was a separate $25 service charge", THEN - So you want me to believe that he wanted 10,000 dollars, got 10,000-y and when he got the money - then the bank said: Oh, you have to now give back $25 dollars. These kinds of things do not happen in real life. It is illogical and an irresponsible question aimed to ruin your score with dumb word play.  
 
We had a situation which is he got 10,000-y. Then we get an additional information that there was an additional charge. It should be inferred that the second information changes the first one, which means that if we combine the two infos we are supposed to land on the conclusion that he received 10,000-y-25. I know that GMAT tricks you with this mischievous wordplay but this question out of hundreds I have done just made me go blind with rage. I imagined the creators of these questions in some dark robes rubbing their hands and chuckling while thinking: "yeah, we'll get a lot of people to suffer with this one."

A bank customer borrowed $10,000, but received y dollars les

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

A bank customer borrowed $10,000, but received y dollars les

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards