# 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?

Correct Answer:

**D**- 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} - Divide both sides by 1.20 to yield a total bill before gratuity of $800.
- 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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