A company accountant estimates that airfares next year for business

Question

A company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, how much will be spent for airfares next year?
 
A. 22930
B. 26180
C. 26330
D. 26490
E. 29770

EddyEd · Accepted Answer

This is my detailed approach:

Fares last year Under 1000 miles: x = 9,900
Fares last year Over 1000 miles: y = 13,000

Number of trips will remain the same from one year to the other

Total spent on fares next year = x*1.2 + y*1.1 = 11,880 + 14,300 = 26,180

I will save time doing the sum of both quantities by looking at the answer choices, units digits will be 0 but all answer choices end in 0. Tenths digits will be 8. Therefore option (b) is correct.

hwgmat2015 · Answer

As the trips remain the same.

9900 * 1.2 + 13000 * 1.1 = 26180

Ans B

hasnain3047 · Answer

20% increase in 9900 = 1.2*9900 = 11880
10% increase in 13000 = 1.1*13000 = 14300
total = 11880+14300 =  26180

fskilnik · Answer

This year´s: $ 13000 + 9900 = $ (23000 - 100)
Addends: $ (2x990 + 1300) = $ (1800+180+1300)

? = 24800 + 1300 + 80 = 25000 + 1100 + 80 = $26180.

The solution above follows the notations and rationale taught in the GMATH method. ("Breaking numbers" avoid mistakes and losing stamina!)

EMPOWERgmatRichC · Answer

Hi All,

We're told that a company accountant estimates that airfares next year for business trips of a thousand miles or less will increase by 20 percent and airfares for all other business trips will increase by 10 percent. This year, total airfares for business trips of a thousand miles or less were $9,900 and airfares for all other business trips were $13,000. According to the accountant's estimate, if the same number of business trips will be made next year as this year, we're asked how much money will be spent in total for airfares next year. Certain questions on Test Day really come down to just doing organized Arithmetic - although you can do a little bit of estimation to save some time on this question.

The cost of the $9900 in flights next year will be $9900 + (.2)($9900) = 9900 + (a little less than $2000, since $2000 is 20% of $10,000) 
The cost of the $13,000 in flights next year will be $13,000 + (.1)($13,000) = $13,000 + $1300 = $14,300

Total = $9900 + $14,300 + (a little less than $2000) 
Total = $24,200 + (a little less than $2000) 
Total = a little less than $26,200

There's only one answer that fits.

Final Answer:  B

GMAT assassins aren't born, they're made, 
Rich

ArnauG · Answer

To calculate the total airfares for next year, we need to apply the respective percentage increases to the airfares for this year and sum them up.

For business trips of a thousand miles or less:
20% increase on $9,900 is 0.20 * $9,900 = $1,980.
The new airfare for business trips of a thousand miles or less will be $9,900 + $1,980 = $11,880.

For all other business trips:
10% increase on $13,000 is 0.10 * $13,000 = $1,300.
The new airfare for all other business trips will be $13,000 + $1,300 = $14,300.

Now, we can calculate the total airfares for next year by summing the two amounts:

Total airfares = Airfares for trips of a thousand miles or less + Airfares for all other trips = $11,880 + $14,300 = $26,180

Therefore, the amount that will be spent for airfares next year, according to the accountant's estimate, is $26,180, which corresponds to option (B).

bumpbot · Answer

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A company accountant estimates that airfares next year for business

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