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by Stuart@KaplanGMAT » Thu Jan 17, 2008 7:22 pm
Picking 100 is a great way to solve many % problems on the GMAT.

Let's let Tracey's buying price be $100.

She sells at 40% mark up, so sale price is $140.

She pays 5% brokerage fee, so 5%(140) = $7, leaving her with a profit of $33.

Now she has to pay 40% of the profit in taxes, which means she has 60% of the profit left. 60% of $33 is $19.80.

So, she made a $19.80 profit on an investment of $100.. that's 19.8%. Pick choice (D).
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by preciousrain7 » Sat Jan 19, 2008 9:44 am
Stuart Kovinsky wrote:Picking 100 is a great way to solve many % problems on the GMAT.

Let's let Tracey's buying price be $100.

She sells at 40% mark up, so sale price is $140.

She pays 5% brokerage fee, so 5%(140) = $7, leaving her with a profit of $33.

Now she has to pay 40% of the profit in taxes, which means she has 60% of the profit left. 60% of $33 is $19.80.

So, she made a $19.80 profit on an investment of $100.. that's 19.8%. Pick choice (D).
you're wonderful!!! i really appreciate all your help! my test is on friday... yikes!
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