Last visit was: 26 Apr 2026, 15:25 It is currently 26 Apr 2026, 15:25
Home
Messages
Tests
Schools
Events
Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
EgmatQuantExpert
User avatar
e-GMAT Representative
Joined: 04 Jan 2015
Last visit: 02 Apr 2024
Posts: 3,657
Own Kudos:
20,892
 [10]
Given Kudos: 165
Expert
Expert reply
Posts: 3,657
Kudos: 20,892
 [10]
A person paid a total amount of $P to purchase a musical instrument. Updated on: 28 Mar 2019, 01:19
Originally posted by EgmatQuantExpert on 13 Mar 2019, 01:42.
Last edited by EgmatQuantExpert on 28 Mar 2019, 01:19, edited 3 times in total.
1
Kudos
Add Kudos
9
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

45% (medium)

Question Stats:

65% (01:59) correct 35% (01:52) wrong based on 413 sessions

History

Date
Time
Result
Not Attempted Yet
A person paid a total amount of $P to purchase a musical instrument. The total amount includes the price of the instrument, a sales tax and a delivery charge. Was the tax paid more than 10% of the price of the instrument?

    1. Sales tax was less than 6% of P.
    2. Sales tax was \(\frac{1}{20}\) of the price of the instrument.

ShowHide Answer
Official Answer
B
User avatar
Archit3110
User avatar
Major Poster
Joined: 18 Aug 2017
Last visit: 26 Apr 2026
Posts: 8,631
Own Kudos:
5,191
 [1]
Given Kudos: 243
Status:You learn more from failure than from success.
Location: India
Concentration: Sustainability, Marketing
GMAT Focus 1: 545 Q79 V79 DI73
GMAT Focus 2: 645 Q83 V82 DI81
GPA: 4
WE:Marketing (Energy)
Products:
GMAT Club Tests Forum Quiz
GMAT Focus 2: 645 Q83 V82 DI81
Posts: 8,631
Kudos: 5,191
 [1]
A person paid a total amount of $P to purchase a musical instrument. 14 Mar 2019, 01:43
Kudos
Add Kudos
Bookmarks
Bookmark this Post
EgmatQuantExpert
A person paid a total amount of $P to purchase a musical instrument. The total amount includes the price of the instrument, a sales tax of 5% charged on the price and a delivery charge, charged as 5% of the tax paid. Was the tax paid more than 10% of the price of the instrument?

1. The tax paid was $400.
2. P = $80000
Show more

basic price = x
Sales tax = 1.05*x
delivery cost = 1.05x *1.05; 1.1025x

#1
tax paid = 400$
so 5/100*x= 400
x= 400*100/5 ; basic price = 8000 $ ;

10% of 8000 ; 800
so yes tax paid was >400$ ; sufficient

#2
P = 80,000
P = 1.1025x
so
80,000=1.1025x
x= 72562.3$ ; basic price
tax = 72562.3*1.05 = 76190.47
tax paid = ~3628 $
sufficient
IMO D
avatar
LilRan22
avatar
Joined: 14 Aug 2018
Last visit: 21 Jan 2022
Posts: 1
Given Kudos: 8
Posts: 1
Kudos: 0
A person paid a total amount of $P to purchase a musical instrument. 14 Mar 2019, 02:40
Kudos
Add Kudos
Bookmarks
Bookmark this Post
- shouldn't #1 be no, but still sufficient? - if tax paid for is $400 - isn’t 10% of 8000(the cost), more than $400?

Posted from my mobile device
User avatar
EgmatQuantExpert
User avatar
e-GMAT Representative
Joined: 04 Jan 2015
Last visit: 02 Apr 2024
Posts: 3,657
Own Kudos:
20,892
Given Kudos: 165
Expert
Expert reply
Posts: 3,657
Kudos: 20,892
A person paid a total amount of $P to purchase a musical instrument. 17 Mar 2019, 22:57
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi all.

Due to some ambiguity present in the previous version of the question, we have made some changes in the question.

You can give it another try...detailed solution will be posted soon. :)

Regards,
User avatar
EgmatQuantExpert
User avatar
e-GMAT Representative
Joined: 04 Jan 2015
Last visit: 02 Apr 2024
Posts: 3,657
Own Kudos:
20,892
 [1]
Given Kudos: 165
Expert
Expert reply
Posts: 3,657
Kudos: 20,892
 [1]
A person paid a total amount of $P to purchase a musical instrument. 18 Mar 2019, 23:00
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
EgmatQuantExpert
A person paid a total amount of $P to purchase a musical instrument. The total amount includes the price of the instrument, a sales tax and a delivery charge. Was the tax paid more than 10% of the price of the instrument?

    1. Sales tax was less than 6% of P.
    2. Sales tax was \(\frac{1}{20}\) of the price of the instrument.
Show more

Solution


Given:
    • A person paid a total amount of $P to purchase a musical instrument.
    • The total amount includes the price of the instrument, a sales tax and a delivery charge.

To find:
    • Whether the tax paid more than 10% of the price of the instrument or not.

Approach and Working:
We can say the total paid amount P = Price + Sales Tax + Delivery Charge
    • Now, to determine whether the tax paid was more than 10% of the price of instrument, we need to know either both the price and tax paid, or the ratio of sales tax and price of the instrument.

Analysing Statement 1
As per the information given in statement 1, sales tax is less than 6% of P.
    • However, from this statement, we cannot determine the relation between sales tax and the price of the instrument.

Hence, statement 1 is not sufficient to answer the question.

Analysing Statement 2
As per the information given in statement 2, sales tax was 1/20 of the price of the instrument.
    • Therefore, sales tax as a percentage of the price = 1/20 x 100 = 5%
    • So, the sales tax paid was less than 10% of the price of the instrument.

Hence, statement 2 is sufficient to answer the question.

Hence, the correct answer is option B.

Answer: B
avatar
fatmanstory
avatar
Joined: 19 Dec 2019
Last visit: 18 Oct 2021
Posts: 4
Own Kudos:
1
Given Kudos: 1
Posts: 4
Kudos: 1
A person paid a total amount of $P to purchase a musical instrument. 04 May 2020, 23:58
Kudos
Add Kudos
Bookmarks
Bookmark this Post
EgmatQuantExpert

Why can't we assume a number for Price and solve this question?
I get D as the answer when I do that(assuming P = $1000)

1) Tax is < 6% => Tax is < $60 which is less than 10% of P i.e ($100). Sufficient
2) Tax is 1/20 of 1000 => $50 which is less than $100 . Sufficient.

Can you point out the mistake here please?
User avatar
anirudhjay
User avatar
Joined: 30 Nov 2025
Last visit: 15 Feb 2026
Posts: 4
Own Kudos:
1
Given Kudos: 38
Posts: 4
Kudos: 1
A person paid a total amount of $P to purchase a musical instrument. 21 Dec 2025, 23:56
Kudos
Add Kudos
Bookmarks
Bookmark this Post
For (1), Tax < 6% of P doesn't reveal anything about Tax as a percentage of the price of the instrument, which is P - Sales Tax - delivery charges. Hence (1) is insufficient.
(2) on the other hand is sufficient, and your reasoning there is on point: sales tax equal to 5% of the price of the instrument means that (2) is sufficient.
fatmanstory
EgmatQuantExpert

Why can't we assume a number for Price and solve this question?
I get D as the answer when I do that(assuming P = $1000)

1) Tax is < 6% => Tax is < $60 which is less than 10% of P i.e ($100). Sufficient
2) Tax is 1/20 of 1000 => $50 which is less than $100 . Sufficient.

Can you point out the mistake here please?
Show more
Moderators:
Bunuel
Math Expert
109910 posts
kingbucky
498 posts
Gmat860sanskar
212 posts