• Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • examPAL
    Most awarded test prep in the world
    Now free for 30 days

    Available with Beat the GMAT members only code

    MORE DETAILS
    examPAL
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep

GMAT Prep - Q35

This topic has 3 member replies
maxim730 Senior | Next Rank: 100 Posts Default Avatar
Joined
26 Dec 2006
Posted:
76 messages
Followed by:
2 members

GMAT Prep - Q35

Post Wed Mar 14, 2007 6:24 pm
See attached Image. I'm having trouble setting up an equation for the problem.. I'm missing something simple.

Thanks!!!

Answer: C
Attachments

This post contains an attachment. You must be logged in to download/view this file. Please login or register as a user.

  • +1 Upvote Post
  • Quote
  • Flag
Post Sat Nov 04, 2017 11:38 pm
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.

  • +1 Upvote Post
  • Quote
  • Flag
Neo2000 Legendary Member
Joined
27 Jan 2007
Posted:
519 messages
Upvotes:
31
Test Date:
30/09
Target GMAT Score:
710
Post Wed Mar 14, 2007 11:59 pm
This kind of a transaction will always result in a loss and the %loss will be of the form

(X^2)/100 where X = %Profit or %Loss

In this case (20^2)/100 = 400/100 = 4% loss

  • +1 Upvote Post
  • Quote
  • Flag
jayhawk2001 Community Manager
Joined
28 Jan 2007
Posted:
789 messages
Followed by:
1 members
Upvotes:
30
Post Wed Mar 14, 2007 8:27 pm
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 Upvote Post
  • Quote
  • Flag

Best Conversation Starters

1 lheiannie07 108 topics
2 Roland2rule 63 topics
3 ardz24 63 topics
4 LUANDATO 50 topics
5 AAPL 42 topics
See More Top Beat The GMAT Members...

Most Active Experts

1 image description GMATGuruNY

The Princeton Review Teacher

152 posts
2 image description Jeff@TargetTestPrep

Target Test Prep

106 posts
3 image description Rich.C@EMPOWERgma...

EMPOWERgmat

104 posts
4 image description Scott@TargetTestPrep

Target Test Prep

96 posts
5 image description Max@Math Revolution

Math Revolution

87 posts
See More Top Beat The GMAT Experts