GMAT Math : Calculating discounts

Study concepts, example questions & explanations for GMAT Math

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Example Questions

Example Question #31 : Calculating Discounts

A lawn-mower is initially listed at \displaystyle \$600. Its price is discounted \displaystyle 10\% off the full price. An employee uses their discount at the register and is charged \displaystyle \$400. What is the employee discount?

Possible Answers:

\displaystyle 15\%

\displaystyle 12.2\%

\displaystyle 25.9\%

\displaystyle 10.0\%

\displaystyle 40.0\%

Correct answer:

\displaystyle 25.9\%

Explanation:

The relationship between the list price, \displaystyle L=\$600, price rung up at the register, \displaystyle S=\$400, the listed discount \displaystyle D=10\% and the unknown employee discount, \displaystyle E is

\displaystyle (1-E/100) =\frac{S}{L(1-D/100)}

Substituting values

\displaystyle (1-E/100) =\frac{400}{600\cdot(1-10/100)}

Solving for \displaystyle E, \displaystyle E=25.9\%

Example Question #91 : Problem Solving Questions

A lawn-mower is initially listed at \displaystyle \$400. Its price is discounted \displaystyle 40\% off the full price. An employee uses their \displaystyle 10\% discount at the register. How much did the employee save relative to the initial list price?

Possible Answers:

\displaystyle \$108.00

\displaystyle \$184.00

\displaystyle \$54.00

\displaystyle \$216.00

\displaystyle \$92.00

Correct answer:

\displaystyle \$184.00

Explanation:

If the initial price is \displaystyle L=\$400 and two discounts \displaystyle D=40\% and \displaystyle E=10\% are applied, the final sale price can be computed using

\displaystyle L\cdot (1-D/100)\cdot (1-E/100)) = S

Inserting values this is:

\displaystyle \$400\cdot(1-40/100)\cdot(1-10/100))\% =\$216=S

The savings off list price is

\displaystyle L-S=\$400- \$216=\$184.

Example Question #31 : Calculating Discounts

A store is offering a discount on clothing purchases made today. It is giving a 10% discount on purchases that total $50.00 to $99.99, a 20% discount on purchases totalling $100.00 to $199.99, and a 30% discount on purchases totaling $200.00 or more. The discount applies only to clothing items; no other items are discounted today.

Paris decides to purchase the following: Two bottles of perfume, one for $32 and one for $42; one handbag for $128; and one dress for $89. Disregarding tax, how much will she pay for these items?

Possible Answers:

\displaystyle \$264.30

\displaystyle \$ 282.10

\displaystyle \$203.70

\displaystyle \$261.90

\displaystyle \$291.00

Correct answer:

\displaystyle \$ 282.10

Explanation:

The only item of clothing among Paris's items is the dress. It costs $89, so Paris will get a 10% discount - that is, she will pay 90% of the price, or

\displaystyle \$89 \cdot 0.90 = \$80.10

She will pay full price for the other items, so she will pay a total of

\displaystyle \$80.10 + \$32.00 + \$42.00 + \$128.00 = \$282.10.

Example Question #102 : Word Problems

A hat is discounted \displaystyle D percent; the sales tax on the hat is \displaystyle T percent. If \displaystyle X is the amount of money paid at the register, what was the price \displaystyle Y of the hat before discount and tax?

Possible Answers:

\displaystyle Y = X \cdot \frac{100}{100-D}\cdot \frac{100}{100+T}

\displaystyle Y = X \cdot \left ( 100-D \right ) \cdot \left ( 100+T \right )

\displaystyle Y = X \cdot \frac{1}{1-D}\cdot \frac{1}{1+T}

\displaystyle Y = X \cdot \left ( 100+D \right ) \cdot \left ( 100-T \right )

\displaystyle Y = X \cdot \frac{100+D}{100}\cdot \frac{100-T}{100}

Correct answer:

\displaystyle Y = X \cdot \frac{100}{100-D}\cdot \frac{100}{100+T}

Explanation:

Let \displaystyle Y be the price of the hat, before discount and tax. 

Taking \displaystyle D percent off the price of the hat is equivalent to charging \displaystyle 100-D percent of the price of the hat, or multiplying the price of the hat by \displaystyle \frac{100-D}{100}.

 Analogously, adding \displaystyle T percent to the amount paid as tax is the same as multiplying the amount paid by \displaystyle 100+T percent, or \displaystyle \frac{100+T}{100}.

Therefore, the amount paid is

\displaystyle X = Y \cdot \frac{100-D}{100}\cdot \frac{100+T}{100}

To find \displaystyle Y in terms of the other variables:

\displaystyle Y \cdot \frac{100-D}{100}\cdot \frac{100+T}{100} = X

\displaystyle Y \cdot \frac{100-D}{100}\cdot \frac{100+T}{100} \cdot \frac{100}{100-D}\cdot \frac{100}{100+T}= X \cdot \frac{100}{100-D}\cdot \frac{100}{100+T}

\displaystyle Y = X \cdot \frac{100}{100-D}\cdot \frac{100}{100+T}

Example Question #31 : Calculating Discounts

A bag is normally \displaystyle \$12.82 but is on sale by \displaystyle 20\%. What is the purse's price to the nearest penny before tax?

 

Possible Answers:

\displaystyle \$12.82

\displaystyle \$15.38

\displaystyle \$10.26

\displaystyle \$11.54

Correct answer:

\displaystyle \$10.26

Explanation:

To calculate a \displaystyle 20\% discount, simply multiply the total by .2 and then subtract it from the original price.

\displaystyle \$12.82\cdot.2=\$2.56

\displaystyle \$12.82-\$2.56=\$10.26

Example Question #101 : Problem Solving Questions

A store is offering a discount on clothing purchases made today. It is giving a \displaystyle 10\% discount on purchases that total \displaystyle \$50.00 to \displaystyle \$99.99, a \displaystyle 20\% discount on purchases totalling \displaystyle \$100.00 to \displaystyle \$199.99, and a \displaystyle 30\% discount on purchases totaling \displaystyle \$200.00 or more. The discount applies only to clothing items; no other items are discounted today.

Bryan decides to purchase the following: Two pairs of jeans that cost \displaystyle \$45 each, two shirts that cost \displaystyle \$32 each, and a bottle of cologne that costs \displaystyle \$18. Disregarding tax, how much will Bryan pay for his items? 

Possible Answers:

\displaystyle \$125.80

\displaystyle \$141.20

\displaystyle \$ 137.60

\displaystyle \$156.60

\displaystyle \$ 120.40

Correct answer:

\displaystyle \$141.20

Explanation:

The discount will apply to the jeans and the shirts, which, together, cost

\displaystyle \$45 + \$45 + \$32 + \$32 = \$154

Clothing purchases between \displaystyle \$100 and \displaystyle \$199.99 are discounted 20%, so Bryan will pay \displaystyle 80\% of the price of the items, or 

\displaystyle \$154 \cdot 0.80 = \$123.20

Add to this the $18 cologne, which is not discounted:

\displaystyle \$123.20 + \$18.00 = \$141.80.

Example Question #32 : Discount

A store is offering a discount on all purchases made today, except for clothing items. It is giving a 10% discount on purchases that total $50.00 to $99.99, a 20% discount on purchases totaling $100.00 to $199.99, and a 30% discount on purchases totaling $200.00 or more. 

Harvey purchases three shirts that cost $49 each, a bottle of cologne that costs $19, and a watch that costs $69. Disregarding tax, what will Harvey pay for the items?

Possible Answers:

\displaystyle \$226.20

\displaystyle \$235.00

\displaystyle \$164.50

\displaystyle \$205.60

\displaystyle \$188.00

Correct answer:

\displaystyle \$226.20

Explanation:

Harvey will receive a discount on the watch and the cologne; their prices total, before discount,

\displaystyle \$19 + \$69 = \$ 88.

Since this purchase totals under $100, he will receive 10% off - that is, he will pay 90% of the original price, or

\displaystyle \$ 88 \cdot 0.90 = \$ 79.20.

Add to this the price of the shirts, for which he will pay full price:

\displaystyle \$ 79.20 + \$49.00 + \$49. 00+ \$49. 00 = \$226.20

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