A person bought certain quantity of rice at the rate of 150 per quintal. 10% of the rice was spoilt. At what price (per quintal) should he sell the remaining rice to earn 20% profit?
a)170
b)175
c)180
d)200
e)225
OE: D
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Profit loss problem
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Hi coolhabhi,
This question isn't written in proper GMAT 'style', but the basic concept behind it is something that you could see on Test Day. For anyone who is a bit confused by the language, you can think of the prompt in these terms:
A person bought a pound of rice for $150. 10% of the rice was spoiled. At what price (per pound) should the remaining rice be sold so that a 20% profit is earned on the original purchase.
20% of $150 = $30, so we need to make $180 from the sale of the remaining rice...
.9 pounds of rice = $180
1 pound of rice = $180/.9 = $1800/9 = $200
Final Answer: D
GMAT assassins aren't born, they're made,
Rich
This question isn't written in proper GMAT 'style', but the basic concept behind it is something that you could see on Test Day. For anyone who is a bit confused by the language, you can think of the prompt in these terms:
A person bought a pound of rice for $150. 10% of the rice was spoiled. At what price (per pound) should the remaining rice be sold so that a 20% profit is earned on the original purchase.
20% of $150 = $30, so we need to make $180 from the sale of the remaining rice...
.9 pounds of rice = $180
1 pound of rice = $180/.9 = $1800/9 = $200
Final Answer: D
GMAT assassins aren't born, they're made,
Rich
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Let the amount purchased = 10 quintals.coolhabhi wrote:A person bought certain quantity of rice at the rate of 150 per quintal. 10% of the rice was spoilt. At what price (per quintal) should he sell the remaining rice to earn 20% profit?
a)170
b)175
c)180
d)200
e)225
Total cost for 10 quintals = (number of quintals)(price per quintal) = 10*150 = 1500.
Since 20% profit must be earned, the selling price = 1500 + (20% of 1500) = 1500 + 300 = 1800.
Since 10% of the quintals are spoiled, the number of quintals sold = 10 - (10% of 10) = 10 - 1 = 9 quintals.
Price per quintal = (total selling price)/(quintals sold) = 1800/9 = 200.
The correct answer is D.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
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