# Practice GMAT Problem Solving Question

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A group of 5 investment bankers and 5 clients recently frequented the Fine Tiger Indian Restaurant. The total bill for the meal, including 20% gratuity, came to \$960. On average, how much did the meal of each individual cost before gratuity?
 A) \$160 B) \$96 C) \$90 D) \$80 E) \$55
Correct Answer: D
1. We know the after a 20% gratuity the bill came to \$960. Set up an equation to figure out the total bill before gratuity (x):
(1 + gratuity percent)(pre-gratuity bill) = total bill
1.20x = \$960 {1.2 is the same as a 20% increase}
2. Divide both sides by 1.20 to yield a total bill before gratuity of \$800.
3. Since there were 10 people dining (5 bankers + 5 clients), in order to find the average cost per person before gratuity, we divide the total bill before gratuity by the total number of people:
\$800/10, which equals \$80. The correct answer is D.

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