swerve wrote:Mike bought a computer system for $4,000 and later sold it. For what price did Mike sell the computer system?

1) Mike sold the computer system for 60% of the price he paid for it.
2) Mike advertised the computer system in a newspaper at a price of $3,000, which was 25% more than the price for which he actually sold it.

The OA is D

Source: Princeton Review

We have cost price = $4,000. We have to get the value of Selling price.

Let's take each statement one by one.

1) Mike sold the computer system for 60% of the price he paid for it.

=> Selling price = 60% of 4,000 = $2,400. Sufficient.

2) Mike advertised the computer system in a newspaper at a price of $3,000, which was 25% more than the price for which he actually sold it.

Advertised prince = Selling price * 125%
3,000 = Selling price * 125%

3,000/125% = Selling price
Selling price = 3,000 * (100/125) = $2,400. Sufficient.

The correct answer: D

Hope this helps!

-Jay
_________________
Manhattan Review GRE Prep

Locations: Manhattan GMAT | GMAT Prep Courses Riyadh | LSAT Prep Courses Orlando | Manhattan Prep SAT Courses | and many more...

Schedule your free consultation with an experienced GMAT Prep Advisor! Click here.