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GRE : Problem Solving
Three individuals contributed $ 800 each toward the purchase of a computer. If they bought the computer on sale for $ 1,950 plus 10% sales tax, how much money should be refunded to each individual?
(A) $ 65
(B) $ 85
(C) $ 150
(D) $ 195
(E) $ 225
The cost of the computer is $ 1,950 + 10% of this amount as sales tax.
= $ 1,950 + $ 195
= $ 2,145
The total amount contributed by all the three individuals is $ 800 X 3
= $ 2,400
The balance amount that will be there after purchasing the computer is
= $ 2,400 - $ 2, 145
= $ 255
Each of the three individuals will get back
= $ 255/3
= $ 85
So, the answer is (B).