maxim730 wrote:See attached Image. I'm having trouble setting up an equation for the problem.. I'm missing something simple.

Thanks!!!

Answer: C

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 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

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

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