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1985 AJHSME Problems/Problem 14

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Problem

The difference between a 6.5\% sales tax and a 6\% sales tax on an item priced at $20 before tax is

\text{(A)} $.01

\text{(B)} $.10

\text{(C)} $.50

\text{(D)} $1

\text{(E)} $10

Solution

The most straightforward method would be to calculate both prices, and subtract. But there's a better method...

Before we start, it's always good to convert the word problems into expressions, we can solve.

So we know that the price of the object after a 6.5\% increase will be 20 \times 6.5\%, and the price of it after a 6\% increase will be 20 \times 6\%. And what we're trying to find is 6.5\% \times 20 - 6\% \times 20, and if you have at least a little experience in the field of algebra, you'll notice that both of the items have a common factor, 20, and we can factor the expression into \begin{align*}(6.5\% - 6\% ) \times 20 &= (.5\% )\times 20 \\&= \frac{.5}{100}\times 20 \\&= \frac{1}{200}\times ...

.10 is choice \boxed{\text{B}}

See Also

1985 AJHSME (ProblemsResources)
Preceded by
Problem 13
Followed by
Problem 15
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Looking for a challenging algebra text? Preparing for MATHCOUNTS or the AMC exams?
Check out Art of Problem Solving's Introduction to Algebra by Richard Rusczyk.
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