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 This topic has expert replies Moderator Posts: 2053 Joined: 29 Oct 2017 Followed by:2 members 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

by AAPL » Tue Dec 21, 2021 6:52 pm

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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 GMAT/MBA Expert GMAT Instructor Posts: 16067 Joined: 08 Dec 2008 Location: Vancouver, BC Thanked: 5254 times Followed by:1268 members GMAT Score:770 Re: 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

by [email protected] » Wed Dec 22, 2021 7:11 am
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
Brent Hanneson - Creator of GMATPrepNow.com

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