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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## percentage and interest tagged by: rolandprowess ##### This topic has 3 expert replies and 0 member replies ## percentage and interest Ms. Adams sold two properties, X and Y, for$30,000 each. She sold property X for 20 % more than she paid for it and sold property Y for 20% less than she paid for it. If expenses are disregarded , what was her total net gain or loss, if any, on the two properties ?

(A) Loss of $1,250 (B) Loss of$2,500
(C) Gain of $1,250 (D) Gain of$2,500
(E) Neither a net gain nor a net loss

Is there any detailed and straight forward approach to this question? qa is b

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Roland2rule wrote:
Ms. Adams sold two properties, X and Y, for $30,000 each. She sold property X for 20 % more than she paid for it and sold property Y for 20% less than she paid for it. If expenses are disregarded , what was her total net gain or loss, if any, on the two properties ? (A) Loss of$1,250
(B) Loss of $2,500 (C) Gain of$1,250
(D) Gain of $2,500 (E) Neither a net gain nor a net loss Since the selling price of$30,000 is 20% more than the cost price of X, the selling price of $30,000 is equal to 120% of the cost price of X: 30,000 = (120/100)X 30,000 = (6/5)X (5/6)(30,000) = X X = 25,000. Since the selling price of$30,000 is 20% less than the cost price of Y, the selling price of $30,000 is equal to 80% of the cost price of Y: 30,000 = (80/100)Y 30,000 = (4/5)Y (5/4)(30,000) = Y Y = 37,500. Sum of the cost prices = 25,000 + 37,500 = 62,500. Sum of the selling prices = 30,000 + 30,000 = 60,000. Net loss = (sum of the cost prices) - (sum of the selling prices) = 62,500 - 60,000 = 2500. The correct answer is B. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now. ### GMAT/MBA Expert GMAT Instructor Joined 04 Oct 2017 Posted: 551 messages Followed by: 11 members Upvotes: 180 Quote: Ms. Adams sold two properties, X and Y, for$30,000 each. She sold property X for 20 % more than she paid for it and sold property Y for 20% less than she paid for it. If expenses are disregarded , what was her total net gain or loss, if any, on the two properties ?

(A) Loss of $1,250 (B) Loss of$2,500
(C) Gain of $1,250 (D) Gain of$2,500
(E) Neither a net gain nor a net loss
Hi Roland2rule,
Lets take a look at your question.

Let the property X has original value of $x, then, it sale price i.e.$30,000 at 20% profit can be represented as:
$$x\ +\ \left(20\%\right)x=30,000$$
$$x\ +\ \left(\frac{20}{100}\right)x=30,000$$
$$x\ +\ \left(0.2\right)x=30,000$$
$$1.2x=30,000$$
$$x=\frac{30,000}{1.2}$$
$$x=25,000$$

Therefore, original price of property X is $25,000 and it was sold at$30,000.
Profit Gained = $30,000 -$25,000 = $5,000 Let the property Y has original value of$y, then, it sale price i.e. $30,000 at 20% loss can be represented as: $$y\ -\ \left(20\%\right)y=30,000$$ $$y\ -\ \left(\frac{20}{100}\right)y=30,000$$ $$y\ -\ \left(0.2\right)x=30,000$$ $$0.8x=30,000$$ $$x=\frac{30,000}{0.8}$$ $$x=37,500$$ Therefore, original price of property Y is$37,500 and it was sold at $30,000. Loss =$37,500 - $30,000 =$7,500

There is a gain of $5,000 in property X and loss of$7,500 in property Y.
The loss is greater than the profit, so to find the total loss we will subtract the profit from the loss.

Loss = 7,500 - 5,000 = $2,500 Therefore, Option B is correct. Hope this helps. I am available, if you'd like any follow up. _________________ GMAT Prep From The Economist We offer 70+ point score improvement money back guarantee. Our average student improves 98 points. Free 7-Day Test Prep with Economist GMAT Tutor - Receive free access to the top-rated GMAT prep course including a 1-on-1 strategy session, 2 full-length tests, and 5 ask-a-tutor messages. Get started now. ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2950 messages Followed by: 19 members Upvotes: 43 Roland2rule wrote: Ms. Adams sold two properties, X and Y, for$30,000 each. She sold property X for 20 % more than she paid for it and sold property Y for 20% less than she paid for it. If expenses are disregarded , what was her total net gain or loss, if any, on the two properties ?

(A) Loss of $1,250 (B) Loss of$2,500
(C) Gain of $1,250 (D) Gain of$2,500
(E) Neither a net gain nor a net loss
We can let x = cost of property X. Thus, the expression (30,000 - x) represents the amount of profit she made on property X.

Since she sold property X for 20% profit, the profit earned from the sale of property X is:

30,000 - x = 0.2x

30,000 = 1.2x

25,000 = x

So, she made a profit of 30,000 - 25,000 = 5,000 dollars on property X.

We can let y = cost of property Y. Thus, the expression (30,000 - y) is negative and represents the loss she experienced from the sale of property Y.

Since she sold property Y at a 20% loss, the loss from the sale of property Y is:

30,000 - y = -0.2y

30,000 = 0.8y

37,500 = y

So, she incurred a loss of 37,500 - 30,000 = 7,500 dollars on property Y.

Since she made 5,000 dollars on property X and lost 7,500 dollars on property Y, she had a net loss of 2,500 dollars.

Answer: B

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