Source: Official Guide for the GMAT 13th Ed. Problem Solving; #203 Official Guide for the GMAT 2015 14th Ed. Problem Solving; #203

1

A store currently charges the same price

A store currently charges the same price for each towel that it sells. If the current price of each towel were to be increased by $1, 10 fewer of the towels could be bought for $120, excluding sales tax. What is the current price of each towel?

2 Explanations

1

SONIKA VASANTH

In the question it has mentioned that the price of the towel 120 after increases by $1. And in the explanation Mike has taken 120/x price of the each towel for the current price. Let me know where i missed.

Thanks in advance:)

Dec 12, 2016 • Comment

Cydney Seigerman, Magoosh Tutor

Hi Sonika,

Happy to clarify :) In the explanation video, Mike defines x as

x = the current price of the towels

So, the quantity 120/x is the number of towels we can buy for $120.

When we increase the price of the towels by $1, the new price is

x + 1 = new price of the towels

Thus, the number of towels we can buy after increasing the price is

120/(x+1)

We're told in the prompt that the value 120/(x+1) is 10 lower than 120/x:

120/(x+1) = 120/x - 10

We can solve this equation for x using the method Mike shows in the explanation to arrive at the correct answer for x or the current price of a towel, $3.

Hope this helps! :)

Dec 12, 2016 • Reply

1

Gravatar Mike McGarry, Magoosh Tutor

Dec 28, 2013 • Comment

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