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 Post subject: GMAT ArithmeticPosted: Thu Jan 26, 2012 4:40 pm

Joined: Sun May 30, 2010 3:15 am
Posts: 424
A taxi company charges \$1.75 for the first quarter of a mile and fifteen cents for each additional quarter of a mile. What is the maximum distance someone could travel with \$4.90?

A. 4 miles
B. 4 1/4 miles
C. 4 3/4 miles
D. 5 1/2 miles
E. 6 1/4 miles

(D) If we start out with \$4.90 and have to spend \$1.75 for the first quarter-mile, we will have \$3.15 left to spend on quarter-mile intervals.

Since \$3.15/\$0.15 = 21, we can buy 21 more quarter-miles, and will travel 22 quarter miles in all:

22 × 1/4 = 5 1/2 miles.

The correct answer is choice (D).
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Quarter = \$.15 or \$.25?
Please correct me if I am wrong. If \$.25 then I guess the answer will be B.

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 Post subject: Re: t.1, qt.34: arithemticPosted: Thu Jan 26, 2012 4:48 pm

Joined: Sun May 30, 2010 2:23 am
Posts: 498
questioner wrote:
Quarter = \$.15 or \$.25?
A quarter of a mile = 0.25 mile.
The question statement tells us that the taxi company charges \$0.15 for every quarter of a mile after the first one.

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