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quants question--Pls help solve?

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I got this question from a friend who got this from his local GMAT prep tutor.

Question: Two men A and B, purchase a grindstone 30 cm in diameter for $12, of which A pays $7 and B pays $5. Now supposing the inner most 10cm of the diameter as useless, how many centimeters of the radius may A grind down before sending the grindstone to B?

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