lisa - gmat prep 2

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lisa - gmat prep 2

by jainrahul1985 » Sat Jul 23, 2011 10:08 pm
Lisa bought a house for $70,000 and paid closing costs equal to 2 percent of the purchase price. Later Lisa sold the house for $82,000 and paid a broker's commission equal to 10 percent of the selling price. What was Lisa's profit from the two transactions?

(A) $2,160
(B) $2,400
(C) $3,600
(D) $3,800
(E) $12,000

OA B
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by Anurag@Gurome » Sat Jul 23, 2011 10:20 pm
jainrahul1985 wrote:Lisa bought a house for $70,000 and paid closing costs equal to 2 percent of the purchase price. Later Lisa sold the house for $82,000 and paid a broker's commission equal to 10 percent of the selling price. What was Lisa's profit from the two transactions?
Profit = The amount Lisa paid - The amount Lisa earned = Sailing price - Broker's commission - Purchase price - Closing cost = $82,000 - 10% of $82,000 - $70,000 - 2% of $70,000 = $(82,000 - 8,200 - 70,000 - 1,400) = $2400

The correct answer is B.
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by Scott@TargetTestPrep » Fri Jun 14, 2019 8:24 am
jainrahul1985 wrote:Lisa bought a house for $70,000 and paid closing costs equal to 2 percent of the purchase price. Later Lisa sold the house for $82,000 and paid a broker's commission equal to 10 percent of the selling price. What was Lisa's profit from the two transactions?

(A) $2,160
(B) $2,400
(C) $3,600
(D) $3,800
(E) $12,000

OA B
Lisa's profit is the following:

0.9 x 82,000 - 70,000 x 1.02 = 73,800 - 71,400 = $2,400

Answer: B

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