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Question:Sarah signed up for a gym membership with a 12-month contract requiring a $180 cancellation fee if terminated early. However,...

GMAT Algebra : (Alg) Questions

Source: Prism
Algebra
Linear functions
EASY
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Question:

Sarah signed up for a gym membership with a 12-month contract requiring a \(\$180\) cancellation fee if terminated early. However, the cancellation fee decreases by \(\$8.50\) for each full month of the contract that has been completed. If Sarah decides to cancel her membership after completing exactly \(7\) months, what cancellation fee will she be charged?

A
\(\$120.50\)
B
\(\$124.00\)
C
\(\$127.50\)
D
\(\$129.00\)
Solution

1. TRANSLATE the problem information

  • Given information:
    • Initial cancellation fee: \(\$180\)
    • Fee decreases by \(\$8.50\) for each full month completed
    • Sarah completed exactly 7 months
    • Need to find: Final cancellation fee

2. INFER the solution approach

  • Key insight: We need to find how much the fee has decreased, then subtract that from the original amount
  • Strategy: Calculate total reduction first (months × reduction per month), then subtract from initial fee

3. SIMPLIFY by calculating the total reduction

  • Total reduction = \(\$8.50 \times 7\) months = \(\$59.50\)

4. SIMPLIFY by finding the final cancellation fee

  • Final fee = Initial fee - Total reduction
  • Final fee = \(\$180 - \$59.50 = \$120.50\)

Answer: A (\(\$120.50\))




Why Students Usually Falter on This Problem


Most Common Error Path:

Weak TRANSLATE reasoning: Students misunderstand "each full month completed" and calculate using 6 months instead of 7 months.

They might think "after 7 months" means only 6 complete months have passed, leading to:

Total reduction = \(\$8.50 \times 6 = \$51.00\)

Final fee = \(\$180 - \$51.00 = \$129.00\)

This may lead them to select Choice D (\(\$129.00\))


Second Most Common Error:

Poor SIMPLIFY execution: Students make arithmetic errors when calculating either the multiplication or the final subtraction.

Common calculation mistakes include:

  • Incorrectly computing \(\$8.50 \times 7\)
  • Making subtraction errors with \(\$180 - \$59.50\)
  • Mixing up the order of operations

This leads to confusion and selection of incorrect answer choices.


The Bottom Line:

This problem tests whether students can systematically break down a linear decrease scenario. The key is recognizing that "exactly 7 months completed" means the full reduction applies to all 7 months, then executing the arithmetic carefully.

Answer Choices Explained
A
\(\$120.50\)
B
\(\$124.00\)
C
\(\$127.50\)
D
\(\$129.00\)
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Question:Sarah signed up for a gym membership with a 12-month contract requiring a $180 cancellation fee if terminated early. However, the cancellation fee decreases by $8.50 for each full month of the contract that has been completed. If Sarah decides to cancel her membership after completing exactly 7 months, what cancellation fee will she be charged? : Algebra (Alg)