Home » Past Questions » Math » A total of 2 questions refer to the following information. The Townsend Realty ...

A total of 2 questions refer to the following information. The Townsend Realty ...


Question

A total of 2 questions refer to the following information.

The Townsend Realty Group invested in the five different properties listed in the table above. The table shows the amount, in dollars, the company paid for each property and the corresponding monthly rental price, in dollars, the company charges for the property at each of the five locations.

(2 of 2) Townsend Realty purchased the Glenview Street property and received a 40% discount off the original price along with an additional 20% off the discounted price for purchasing the property in cash. Which of the following best approximates the original price, in dollars, of the Glenview Street property?

Options

A)
$350,000
B)
$291,700
C)
$233,300
D)
$175,000

The correct answer is B.

Explanation:

Choice B is correct. Let x be the original price, in dollars, of the Glenview Street property. After the 40% discount, the price of the property became 0.6x dollars, and after the additional 20% off the discounted price, the price of the property became 0.8(0.6x). Thus, in terms of the original price of the property, x, the purchase price of the property is 0.48x. It follows that 0.48x = 140,000. Solving this equation for x gives x = 291,666.6. Therefore, of the given choices, $291,700 best approximates the original price of the Glenview Street property.

Choice A is incorrect because it is the result of dividing the purchase price of the property by 0.4, as though the purchase price were 40% of the original price. Choice C is incorrect because it is the closest to dividing the purchase price of the property by 0.6, as though the purchase price were 60% of the original price. Choice D is incorrect because it is the result of dividing the purchase price of the property by 0.8, as though the purchase price were 80% of the original price.


More Past Questions:


Discussion