Karen sold her house at a loss of 25 percent of the price that she originally paid for the house, and then bought anothe

[VJesus12]

Karen sold her house at a loss of 25 percent of the price that she originally paid for the house, and then bought another house at a price of 30 percent less than the price she originally paid for her first house. If she sold the first house for $225,000, what was her net gain, in dollars, for the two transactions?

(A) $15,000

(B) $25,000

(C) $60,000

(D) $75,000

(E) $90,000

Answer: A

Source: Princeton Review

[Scott@TargetTestPrep]

Karen sold her house at a loss of 25 percent of the price that she originally paid for the house, and then bought another house at a price of 30 percent less than the price she originally paid for her first house. If she sold the first house for $225,000, what was her net gain, in dollars, for the two transactions?

(A) $15,000

(B) $25,000

(C) $60,000

(D) $75,000

(E) $90,000

Answer: A

Solution:

We can use the following equation to determine the cost of Karen’s house:

0.75n = 225,000

n = 300,000

She bought her new house for 0.7 x 300,000 = $210,000

Thus, her net gain was $15,000.

Answer: A