AAPL wrote: ↑Tue Dec 21, 2021 6:52 pm

**GMAT Prep**
Bobby bought two shares of stock, which he sold for $96 each. If he had a profit of 20 percent on the sale of one of the shares but a loss of 20 percent on the sale of the other share, then on the sale of both shares combined 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

Let x = the ORIGINAL purchase price of the stock that had a PROFIT of 20%

So, 1.2x = the SALE price when Bobby sold the stock for a profit of 20%

Since Bobby sold that stock for $96, we can write: 1.2x = 96

Solve to get:

**x = $80**
Let y = the ORIGINAL purchase price of the stock that had a LOSS of 20%

So, 0.8x = the SALE price when Bobby sold the stock for a loss of 20%

Since Bobby sold that stock for $96, we can write: 0.8x = 96

Solve to get:

**y = $120**
This means the total cost of Bobby's ORIGINAL purchase =

**$80** +

**$120** =

**$200**
The total SALE price of the two stocks = $96 + $96 =

**$192**
So, Bobby lost a total of $8 in this transaction.

Answer: C