If a brokerage firm charged a commission of 2% of the total dollar amount of a certain trade, what was the total dollar amount of that trade?
1. The dollar amount of the trade minus the brokerage firm's commission was $88000
2. The brokerage firm's commission decreased the profit earned on the trade by 20%.
The OA is A
Source: Manhattan Prep
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If a brokerage firm charged a commission of 2% of the total
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Say the total dollar amount of the trade was $x; thus, the total amount paid = x + 2% of x = $1.02xswerve wrote:If a brokerage firm charged a commission of 2% of the total dollar amount of a certain trade, what was the total dollar amount of that trade?
1. The dollar amount of the trade minus the brokerage firm's commission was $88000
2. The brokerage firm's commission decreased the profit earned on the trade by 20%.
The OA is A
Source: Manhattan Prep
We have to get the value of x.
Let's take each statement one by one.
1. The dollar amount of the trade minus the brokerage firm's commission was $88000.
=> 88,000 = (100 - 2)% of the dollar amount of the trade
The dollar amount of the trade = 88,000/98%= A unique value. Sufficient.
2. The brokerage firm's commission decreased the profit earned on the trade by 20%.
Insufficient as we do not have any information about the profits.
The correct answer: A
Hope this helps!
-Jay
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