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GMAT Percent and Interest Question



A t-shirt company charges a flat $50 set-up fee plus $4 per shirt and requires 14 days processing time. For a rush job, the company charges an additional $50 rush set-up fee, plus a surcharge of $1 per shirt per day (in addition to the original amount) for each day less than the standard 14-day processing time. (For instance, 13 days notice would be $5 per shirt, 12 days would be $6 per shirt, etc.)
If a customer orders 50 shirts 5 days prior to his desired pickup date, by what percent is his charge greater than it would have been had he provided at least 14 days’ notice?

A. 180%
B. 200%
C. 210%
D. 280%
E. 300%









The cost of purchasing 50 shirts with at least 14 days notice:

50 + 4(50) = 250

In the case of a 5-day notice — 9 days fewer than 14-day notice — each shirt would then be charged $4 + $9 = $13. Then the $50 rush fee would also be added. 

50 + 50 + 13(50) = 100 + 650 = 750

We can now determine the percent change, using the formula percentage Percent change is [(new — old)/old] x 100 percent.

(750–250)/250 x 100

500/250 x 100 = 2 x 100 = 200 percent


B




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1 comment:

Rum Tan said...

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