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## Bobby bought 2 shares, and which he sold for $96 each. If he ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult GMAT Prep Bobby bought 2 shares, and which he sold for$96 each. If 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, then on the sale of both shares Bobby had...

A. A profit of 10
B. A profit of 8
C. A loss of 8
D. A loss of 10
E. Neither a profit nor a loss

OA C.

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Bobby bought 2 shares, and which he sold for $96 each. If 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, then on the sale of both shares Bobby had... A. A profit of 10 B. A profit of 8 C. A loss of 8 D. A loss of 10 E. Neither a profit nor a loss (Common) Assumption: although not explicitly mentioned, we are dealing with profit of 20% over the cost on the corresponding sale. The same for the loss. $?\,\,\,:\,\,\,{\text{profit/loss}}\,\,\left( \ \right)$ $1{\text{st}}\,\,{\text{share}}:\,\,\,\,\,96 = \,\,\left( {1 + \frac{1}{5}} \right)\,\,{\text{cost}}\,\,\,\,\,\, \Rightarrow \,\,\,\,\,\,{\text{cost}} = \frac{5}{6}\left( {96} \right)\,\,\,\,\,\, \Rightarrow \,\,\,\,\,\,{\text{profit}} = \frac{1}{6}\left( {96} \right) = \underleftrightarrow {\frac{{60 + 36}}{6}} = 16\,\,\,\left( \ \right)$ $2{\text{nd}}\,\,{\text{share}}:\,\,\,\,\,96 = \,\,\left( {1 - \frac{1}{5}} \right)\,\,{\text{cost}}\,\,\,\,\,\, \Rightarrow \,\,\,\,\,\,{\text{cost}} = \frac{5}{4}\left( {96} \right)\,\,\,\,\,\, \Rightarrow \,\,\,\,\,\,{\text{loss}} = \frac{1}{4}\left( {96} \right) = \underleftrightarrow {\frac{{80 + 16}}{4}} = 24\,\,\left( \ \right)$ $?\,\, = \,\,\,16 + \left( { - 24} \right) = - 8\,\,\left( \ \right)$ This solution follows the notations and rationale taught in the GMATH method. Regards, Fabio. _________________ Fabio Skilnik :: GMATH method creator ( Math for the GMAT) English-speakers :: https://www.gmath.net Portuguese-speakers :: https://www.gmath.com.br ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2215 messages Followed by: 17 members Upvotes: 43 AAPL wrote: GMAT Prep Bobby bought 2 shares, and which he sold for$96 each. If 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, then on the sale of both shares Bobby had...

A. A profit of 10
B. A profit of 8
C. A loss of 8
D. A loss of 10
E. Neither a profit nor a loss
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. 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 and a loss of 24 dollars, he has a net loss of 8 dollars. Answer: C _________________ Scott Woodbury-Stewart Founder and CEO ### GMAT/MBA Expert Elite Legendary Member Joined 23 Jun 2013 Posted: 10106 messages Followed by: 494 members Upvotes: 2867 GMAT Score: 800 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 _________________ Contact Rich at Rich.C@empowergmat.com • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

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