Practice GMAT Problem Solving Question
Return to the list of practice GMAT problem solving questions.
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.
Return to the list of practice GMAT problem solving questions.