The cost of a certain shirt is $20 before a 5% sales tax is added. What is the total cost,...
GMAT Problem-Solving and Data Analysis : (PS_DA) Questions
The cost of a certain shirt is \(\$20\) before a \(5\%\) sales tax is added. What is the total cost, including sales tax, to purchase the shirt?
\(\$20.05\)
\(\$20.50\)
\(\$21.00\)
\(\$25.00\)
1. TRANSLATE the problem information
- Given information:
- Original shirt cost: \(\$20\)
- Sales tax rate: \(5\%\)
- Need to find: Total cost including tax
2. INFER the approach needed
- Total cost = Original cost + Tax amount
- First we need to calculate the tax amount, then add it to the original cost
3. TRANSLATE percentage to decimal and SIMPLIFY the tax calculation
- Convert 5% to decimal: \(5\% = 0.05\)
- Calculate tax amount: \(0.05 \times \$20 = \$1.00\)
4. SIMPLIFY to find total cost
- Total cost = \(\$20 + \$1 = \$21\)
Answer: C. \(\$21.00\)
Why Students Usually Falter on This Problem
Most Common Error Path:
Weak TRANSLATE skill: Students may misinterpret what "5% sales tax" means mathematically. Instead of calculating 5% of the \(\$20\) cost, they might think the tax is simply \(\$0.05\).
This leads to: \(\$20 + \$0.05 = \$20.05\)
This may lead them to select Choice A (\(\$20.05\))
Second Most Common Error:
Poor percentage conversion: Students might convert 5% incorrectly, perhaps thinking \(5\% = 0.5\) instead of \(0.05\).
This leads to: \(0.5 \times \$20 = \$10\), then \(\$20 + \$10 = \$30\), or they might make other calculation errors that result in \(\$20.50\).
This may lead them to select Choice B (\(\$20.50\))
The Bottom Line:
This problem tests whether students can correctly translate percentage language into mathematical operations and understand the basic concept that sales tax is calculated as a percentage of the original cost, then added to find the total.
\(\$20.05\)
\(\$20.50\)
\(\$21.00\)
\(\$25.00\)