### All GMAT Math Resources

## Example Questions

### Example Question #1 : Calculating Discounts

The following is a partial menu at Moonbucks Coffee.

Today, Moonbucks is running a special - buy one drink and get one of equal or lesser value free.

Charles is buying drinks for his family. He orders three lattes, two cappucinos, two espressos, and a Turkish coffee. How much will he pay for the drinks, disregarding tax?

**Possible Answers:**

None of the other choices are correct.

**Correct answer:**

List the prices of the drinks in descending order:

With the most expensive drink, Charlie will get the second-most expensive drink free; with the third-most expensive drink, he will get the fourth-most expensive drink free; and so forth.

Charlie will only pay for the first, third, fifth, and seventh most expensive drinks. Add their prices.

### Example Question #1 : Discount

Wally has a $500 gift card that he wants to spend at the store where he works. He gets a 25% employee discount, and the sales tax rate is 6.45%. How much can Wally spend *before the discount and tax* using only his gift card? (Round to the nearest cent.)

**Possible Answers:**

None of the other answers are correct.

**Correct answer:**

Let be the price of the merchandise before discount and tax are figured in.

A 25% discount means that the price Wally pays is of the retail price. This can be written as .

A 6.45% sales tax means that of that discounted price is being paid.

We can combine the discount and sales rate as .

As the maximum purchase price after discount and tax is $500, we set up the following equation:

Wally can purchase up to $626.27 in merchandise.

### Example Question #71 : Word Problems

Vanessa purchased an mp3 player, originally priced at $290, but discounted by $27. Approximately what percent discount did Vanessa receive on the mp3 player?

**Possible Answers:**

**Correct answer:**

27 is a little less than 29, which is 10% of $290. Therefore, 9% is the closest approximation.

### Example Question #1 : Discount

The following is a partial menu at Moonbucks Coffee:

Jim is allowed to use his 20% employee discount on up to four drinks per day. Assuming he has not used the discount yet today, Jim wants to purchase three Americanos, a Turkish coffee, and a latte. After the discount, what will the drinks cost him? (Disregard tax).

**Possible Answers:**

**Correct answer:**

The 20% discount will apply to the four most expensive drinks, presumably, so he will pay 20% less - or 80% - for the Turkish coffee, the latte, and two of the Americanos, and full price for the third Americano.

The price he will pay is as follows:

He will pay $11.26 for the drinks.

### Example Question #71 : Word Problems

The above is the menu at Monorail Sandwich Shop.

Kyle works at Monorail and is therefore allowed to buy up to four sandwiches and four sodas a day with his 25% employee discount. If he buys more than the allowed number with any one purchase, he can take 25% off the four highest-priced sandwiches and the four highest-priced sodas.

Kyle is buying three turkey sandwiches, three ham sandwiches, and six large sodas. If this is Kyle's first purchase of the day, how much will he pay, disregarding tax?

**Possible Answers:**

**Correct answer:**

Kyle is buying six sandwiches and six large sodas, so his discount will apply to four of the sodas and the four highest-priced sandwiches - namely, the three turkey sandwiches and one ham sandwich.

The price of those eight items, before discount, is

.

A 25% discount means that Kyle will pay 75% of this, or

.

The items for which Kyle will pay full price - two ham sandwiches and two large sodas - cost

.

The total cost to Kyle:

### Example Question #1 : Discount

A restaurant owner allows employees to purchase meals for 28% off list price. An employee purchases a meal with a list price of $16.50. What does she pay for the meal?

**Possible Answers:**

**Correct answer:**

If she gets a 28% discount, she pays 72% of the list price:

### Example Question #1 : Discount

A clothing store offers a dress initally at $100. Then one week later, the store offers the dress at 15% off. The dress still doesn't sell, so after another week, the store reduces its new price by 20%. How much does the dress cost now?

**Possible Answers:**

$69

$60

$66

$68

$65

**Correct answer:**

$68

For the first discount, we have . So the dress is worth $85

After the second discount, we have

So the final dress price is $68

### Example Question #10 : Discount

Julie has a choice between purchasing a hat at Stacy's or purchasing an identical hat at Gumble's. The hat at Stacy's costs $350. The hat at Gumble's normally costs $425, but it is on sale at 20% off. The sales tax is 7.5% for both stores. At which store can Julie get the hat cheaper, and how much will she save?

**Possible Answers:**

Julie saves $155.88 by going to Stacy's.

Julie saves $10.75 by going to Gumble's.

Julie saves $10.00 by going to Gumble's.

More information is needed to answer the problem.

Julie saves $145.00 by going to Stacy's.

**Correct answer:**

Julie saves $10.75 by going to Gumble's.

If Julie purchases the hat at Stacy's, she will spend $350 plus 7.5% of this as tax - that is, she will spend 1.075 times $350:

.

If Julie purchases the hat at Gumble's, her price before tax will be 20% off of the price of $425 - this is 80% of, or 0.80 times, $425:

Adding 7.5% tax, Julie will spend 1.075 times $340:

.

By going to Gumble's, she saves

### Example Question #11 : Discount

Phillip wants to buy a new pair of shoes, but he can find the style and size he wants in only two stores. At Shoe Festival, where he works - and receives a 25% associate discount - the shoes are available for $220. At the rival Costless Shoe Store, they sell for $150. If he shops at Shoe Festival, he does not have to pay the sales tax of 8.5%; if he shops at Costless, he does.

At which store will he get the shoes cheaper, and how much will he save by going there?

**Possible Answers:**

Phillip will save $16.28 if he buys the shoes at Costless.

Phillip will save $16.28 if he buys the shoes at Shoe Festival.

Phillip will save $2.25 if he buys the shoes at Costless.

Phillip will save $15.00 if he buys the shoes at Costless.

Phillip will save $2.25 if he buys the shoes at Shoe Festival.

**Correct answer:**

Phillip will save $2.25 if he buys the shoes at Costless.

If Phillip buys the shoes at Shoe festival, their cost including the discount will be 25% off $220, or 75% of $220. This will be

If he buys the shoes at Costless, he will pay $150 plus 8.5% tax - that is, he will pay 1.085 times $150, or

Phillip will save

buying at Costless.

### Example Question #71 : Word Problems

The price of a dress after a 15% store discount and a 15% employee discount is . In terms of , give the price of the dress *before* the discounts.

**Possible Answers:**

**Correct answer:**

Call the price *before *the two discounts. The amount of the store discount is 15% of this; the final purchase price is , or , of the original price, so the price after the store discount, but before the employee discount, is .

Similarly, the price after the employee discount will be of this, or

So

and, consequently,

or

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