See attached Image. I'm having trouble setting up an equation for the problem.. I'm missing something simple.
Thanks!!!
Answer: C
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- jayhawk2001
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Let the buying price for the stocks be x and y resp.
1.2x = 96, so x = 80. Hence profit = 16$
.8y = 96, so y = 120. Hence loss = 24$
So net loss = 8$
1.2x = 96, so x = 80. Hence profit = 16$
.8y = 96, so y = 120. Hence loss = 24$
So net loss = 8$
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let the cost price of the two shares of stock be x and y.
on X, he had a profit of 20% and on Y, he had a loss of 20%.
since selling price= cost price +/- cost price (%profit).
this implies that
selling price of the first share = x + x(20%) (profit)
96= x + 0.2x
96= 1.2x
$$x=\frac{96}{1.2}=$80$$
Also, the selling price of the second share = y - y(20%) (loss)
96= y - 0.2y
96= 0.8y
$$y=\frac{96}{0.8}=$120$$
Now, on the sale of both shares combined, selling prices= $(96 + 96) = $192
since profit/loss = x+y = 120+80= $200
since profit/loss = selling price - cost price (192-200) = -$8 (loss)
and percent profit/loss = (profit/loss amount * 100%) / cost price
$$=\frac{8}{200}\cdot100\%\ =4\%$$
therefore, he had a loss of 4% on both shares combined which is equivalent to a loss of $8.
on X, he had a profit of 20% and on Y, he had a loss of 20%.
since selling price= cost price +/- cost price (%profit).
this implies that
selling price of the first share = x + x(20%) (profit)
96= x + 0.2x
96= 1.2x
$$x=\frac{96}{1.2}=$80$$
Also, the selling price of the second share = y - y(20%) (loss)
96= y - 0.2y
96= 0.8y
$$y=\frac{96}{0.8}=$120$$
Now, on the sale of both shares combined, selling prices= $(96 + 96) = $192
since profit/loss = x+y = 120+80= $200
since profit/loss = selling price - cost price (192-200) = -$8 (loss)
and percent profit/loss = (profit/loss amount * 100%) / cost price
$$=\frac{8}{200}\cdot100\%\ =4\%$$
therefore, he had a loss of 4% on both shares combined which is equivalent to a loss of $8.
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We are given that Bobby bought 2 shares, which he sold for $96 each, and that he made a 20% profit on the sale of one share and had a loss of 20% on the sale of the other share. We can set up the following equations in which c = the cost of the first share and d = the cost of the second share.maxim730 wrote:See attached Image. I'm having trouble setting up an equation for the problem.. I'm missing something simple.
Thanks!!!
Answer: C
For the first share, with a profit of 20%, we have:
Profit = 0.2c
Since profit = revenue - cost, we have:
96 - c = 0.2c
96 = 1.2c
c = 80
Thus, the profit for the first share was 96 - 80 = 16 dollars.
For the 20% loss we have:
Profit = -0.2d
Since profit = revenue - cost, we have:
96 - d = -0.2d
96 = 0.8d
d = 120
Thus, the loss for the second share was 96 - 120 = 24 dollars.
Since Bobby has a profit of 16 dollars from one share of stock and a loss of 24 dollars from the other share, he has a net loss of 8 dollars.
Answer: C
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Hi All,
We're told that Bobby bought 2 shares, which he sold for $96 each, he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share. We're asked to find the TOTAL profit or loss on the sale of the two shares. This question essentially comes down to creating two equations and then solving for the original purchase price of each share.
The 20% profit share --> X + .2X = 96
The 20% loss share --> Y - .2Y = 96
1.2X = 96
12X = 960
X = 960/12 = $80
For the first share, the PROFIT was $96 - $80 = $16
.8Y = 96
8Y = 960
Y = 960/8 = $120
For the second share, the LOSS was $120 - $96 = $24
$16 profit - $24 loss = Total LOSS of $8
Final Answer: C
GMAT assassins aren't born, they're made,
Rich
We're told that Bobby bought 2 shares, which he sold for $96 each, he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share. We're asked to find the TOTAL profit or loss on the sale of the two shares. This question essentially comes down to creating two equations and then solving for the original purchase price of each share.
The 20% profit share --> X + .2X = 96
The 20% loss share --> Y - .2Y = 96
1.2X = 96
12X = 960
X = 960/12 = $80
For the first share, the PROFIT was $96 - $80 = $16
.8Y = 96
8Y = 960
Y = 960/8 = $120
For the second share, the LOSS was $120 - $96 = $24
$16 profit - $24 loss = Total LOSS of $8
Final Answer: C
GMAT assassins aren't born, they're made,
Rich