Find all School-related info fast with the new School-Specific MBA Forum

It is currently 28 Jul 2015, 19:22
GMAT Club Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A used car dealer sold one car at a profit of 25 percent of

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Intern
Intern
avatar
Joined: 16 Jul 2008
Posts: 15
Followers: 0

Kudos [?]: 10 [1] , given: 0

A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 23 Jul 2008, 21:15
1
This post received
KUDOS
4
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

68% (02:27) correct 32% (01:06) wrong based on 425 sessions
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

A. 1000 profit
B. 2000 profit
C. 1000 loss
D. 2000 loss
E. 3334 loss
[Reveal] Spoiler: OA
2 KUDOS received
Director
Director
avatar
Joined: 27 May 2008
Posts: 550
Followers: 7

Kudos [?]: 227 [2] , given: 0

Re: Easy percentage problem...but whats the easiest way to solve [#permalink] New post 23 Jul 2008, 22:23
2
This post received
KUDOS
4
This post was
BOOKMARKED
djdela wrote:
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

a) 1000 profit
b) 2000 profit
c) 1000 loss
d) 2000 loss
e) 3334 loss


car 1 :
P1*1.25 = 20000
P1 = 16000

car2
P2*0.8 = 20000
P2 = 25000

P1+P2 = 41000
Final sale = 40000

1000 loss .. option C
Manager
Manager
avatar
Joined: 27 Oct 2009
Posts: 151
Location: Montreal
Schools: Harvard, Yale, HEC
Followers: 1

Kudos [?]: 30 [0], given: 18

I am angry at this question [#permalink] New post 04 Jan 2011, 17:37
For me, the key to solve this problem is to know which amount to subtract from. Its easy to calculate the two amount of 41000 and 40000 but if you subtract 40000 from 41000 then you will have a profit of 1000 and vice-versa.

My question is what determines which one is the reference point???

Thanks guys.
Expert Post
4 KUDOS received
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 28731
Followers: 4577

Kudos [?]: 47194 [4] , given: 7108

Re: I am angry at this question [#permalink] New post 05 Jan 2011, 06:53
4
This post received
KUDOS
Expert's post
5
This post was
BOOKMARKED
ezinis wrote:
For me, the key to solve this problem is to know which amount to subtract from. Its easy to calculate the two amount of 41000 and 40000 but if you subtract 40000 from 41000 then you will have a profit of 1000 and vice-versa.

My question is what determines which one is the reference point???

Thanks guys.


A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?
a) 1000 profit
b) 2000 profit
c) 1000 loss
d) 2000 loss
e) 3334 loss

A dealer sold one car at a profit of 25% of the dealers purchase price for that car, let's say \(p_1\), for $20,000 --> \(p_1*1.25=20,000\) --> \(p_1=16,000\) --> \(profit=selling \ price-purchase \ price=20,000-16,000=4,000\);

A dealer sold another car at a loss of 20% of the dealers purchase price for that car, let's say \(p_2\), again for $20,000 --> \(p_2*0.8=20,000\) --> \(p_2=25,000\) --> \(loss=purchase \ price-selling \ price=25,000-20,000=5,000\);

Overall loss 5,000-4,000=1,000.

Or the way you are doing: the cars were purchased for \(p_1+p_2=16,000+25,000=41,000\), and sold for \(20,000+20,000=40,000\) so the overall loss is \(41,000-40,000=1,000\).

Answer: C.

Hope it's clear.
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis ; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) ; 12. Tricky questions from previous years.

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

GMAT Club Premium Membership - big benefits and savings

Manager
Manager
avatar
Joined: 27 Oct 2009
Posts: 151
Location: Montreal
Schools: Harvard, Yale, HEC
Followers: 1

Kudos [?]: 30 [0], given: 18

Re: Easy percentage problem...but whats the easiest way to solve [#permalink] New post 05 Jan 2011, 07:13
oh yeah, it helps. Well done. Thanks +1
Expert Post
9 KUDOS received
Veritas Prep GMAT Instructor
User avatar
Joined: 16 Oct 2010
Posts: 5735
Location: Pune, India
Followers: 1444

Kudos [?]: 7573 [9] , given: 186

Re: Easy percentage problem...but whats the easiest way to solve [#permalink] New post 05 Jan 2011, 11:00
9
This post received
KUDOS
Expert's post
djdela wrote:
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

a) 1000 profit
b) 2000 profit
c) 1000 loss
d) 2000 loss
e) 3334 loss


Logical approach:

Car 1 - profit of 25% i.e. 1/4 i.e. 1 part profit for 4 parts of cost price. So selling price ($20,000) has total 5 parts (each being $4000) out of which 1 part is profit i.e. $4000.
Car 2 - loss of 20% i.e. 1/5 i.e. 1 part of loss out of 5 parts of cost price was removed to get selling price ($20,000) which has 4 parts now. So each part is $5000 and the loss is 1 part i.e. $5000.

Overall, loss of $5000 - $4000 = $1000
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199

Veritas Prep Reviews

Manager
Manager
User avatar
Joined: 27 Oct 2011
Posts: 191
Location: United States
Concentration: Finance, Strategy
GMAT 1: Q V
GPA: 3.7
WE: Account Management (Consumer Products)
Followers: 4

Kudos [?]: 69 [0], given: 4

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 18 Apr 2012, 18:59
Great answer guys, you have to be sure you set your equations right. I mistakenly did 20,000 - P2 = .2P2 which is wrong cause it should be -.2P2.
_________________

DETERMINED TO BREAK 700!!!

Expert Post
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 28731
Followers: 4577

Kudos [?]: 47194 [0], given: 7108

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 14 Aug 2013, 01:44
Expert's post
Intern
Intern
avatar
Joined: 21 Mar 2013
Posts: 14
Followers: 0

Kudos [?]: 3 [0], given: 13

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 01 Mar 2014, 13:05
Bunuel wrote:
Bumping for review and further discussion.


20.000 * (25%-20%) = 5% * 20.000 = 1.000
SVP
SVP
User avatar
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1859
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Followers: 23

Kudos [?]: 1008 [0], given: 193

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 08 Jul 2014, 21:08
mariofelix wrote:
Bunuel wrote:
Bumping for review and further discussion.


20.000 * (25%-20%) = 5% * 20.000 = 1.000



This method will not tell if its loss or profit; I believe we require to do the whole computation (as did by Bunuel, others)
_________________

Kindly press "+1 Kudos" to appreciate :)

Intern
Intern
User avatar
Joined: 02 Jan 2015
Posts: 34
GMAT Date: 02-08-2015
GPA: 3.7
WE: Management Consulting (Consulting)
Followers: 0

Kudos [?]: 10 [0], given: 54

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 24 Jan 2015, 05:50
Would it be possible to use the answer choices in this question? It seems that backsolving would be cumbersome but it is possible? Thanks.

Incidentally, you can save a small amount of calculation time by solving directly for the profit / loss (see below).

20,000 = 1.25x
So 0.25x = the profit for this car
0.25 = 1.25/5
20,000/5 = 4,000 profit

20,000 = 0.8y
So 0.2y = the loss for this car
0.2y = 0.8y/4
20,000/4 = 5,000 loss

Overall profit / loss = 4,000 - 5,000 = 1,000
Expert Post
Veritas Prep GMAT Instructor
User avatar
Joined: 16 Oct 2010
Posts: 5735
Location: Pune, India
Followers: 1444

Kudos [?]: 7573 [0], given: 186

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 26 Jan 2015, 03:12
Expert's post
ElCorazon wrote:
Would it be possible to use the answer choices in this question? It seems that backsolving would be cumbersome but it is possible? Thanks.

Incidentally, you can save a small amount of calculation time by solving directly for the profit / loss (see below).

20,000 = 1.25x
So 0.25x = the profit for this car
0.25 = 1.25/5
20,000/5 = 4,000 profit

20,000 = 0.8y
So 0.2y = the loss for this car
0.2y = 0.8y/4
20,000/4 = 5,000 loss

Overall profit / loss = 4,000 - 5,000 = 1,000


There is no reason why you should use the options in this question since it is easy to see how to proceed from the given data in the question whereas it is very difficult to decide how to proceed from the options.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199

Veritas Prep Reviews

Intern
Intern
avatar
Joined: 20 Dec 2014
Posts: 14
Followers: 0

Kudos [?]: 1 [0], given: 20

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 16 Mar 2015, 13:10
Let P = Purchase Price

Car 1 Profit: $20,000= (25/100) P + P => $20,000 = (1/4)P+P => $20,000 = 5/4P

P= $16,000

$20,000-$16,000= $4,000 profit

Car 2 Profit: $20,000 = P - (20/100)P => $20,000= P - (1/5)P => $20,000 = 4/5P
P= $25,000

$20,000 - $25,000 = $5,000 loss

$4,000 - $5,000 = $1,000 loss

Answer is C
Re: A used car dealer sold one car at a profit of 25 percent of   [#permalink] 16 Mar 2015, 13:10
    Similar topics Author Replies Last post
Similar
Topics:
2 Experts publish their posts in the topic The above graph lists the number of cars sold per month at a car deale Bunuel 4 06 Jan 2015, 07:06
3 Experts publish their posts in the topic A certain car uses one gallon of gasoline every 30 miles when goodyear2013 1 31 Oct 2014, 03:15
Experts publish their posts in the topic A car dealership sold two cars: the first car at a 10% enigma123 1 17 Mar 2012, 03:18
7 Experts publish their posts in the topic A car dealership sold two cars: the first car at a 10% zest4mba 16 02 Sep 2010, 11:24
10 Experts publish their posts in the topic In May, Xiang sold 15 used cars. For these 15 cars, the EnterMatrix 3 17 Jul 2010, 10:18
Display posts from previous: Sort by

A used car dealer sold one car at a profit of 25 percent of

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.