GMAT Prep-2, Profit and Loss

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GMAT Prep-2, Profit and Loss

by prasantnaidu » Tue Jun 09, 2009 11:03 pm
Bobby bought 2 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 both shares combined bobby had?

a. a profit of $10
b. a profit of $8
c. a loss of $8
d. a loss of $8
e. neither a profit nor a loss.

Ans is a loss of $8.

This particular question was discussed earlier but i am not able to understand the solution. Can someone give a try to this.
Thanks.
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by tohellandback » Tue Jun 09, 2009 11:16 pm
share 1:
20% profit, so he bought it for 80 dollars- profit 16 dollars

share 2: 20 percent loss: so he must have bought it for 120 dollars- loss=24dollars
total loss =24-16=8

Hope i helped
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thanks

by prasantnaidu » Tue Jun 09, 2009 11:22 pm
@tohellandback-> thanks a lot.

Keep Rocking,
Prasant
You don't win the Silver, You lose the GOLD.