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

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A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 23 Jul 2008, 21:15
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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
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Re: Easy percentage problem...but whats the easiest way to solve [#permalink] New post 23 Jul 2008, 22:23
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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
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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.
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Re: I am angry at this question [#permalink] New post 05 Jan 2011, 06:53
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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.
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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
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Re: Easy percentage problem...but whats the easiest way to solve [#permalink] New post 05 Jan 2011, 11:00
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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
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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.
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Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] New post 14 Aug 2013, 01:44
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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
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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)
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Re: A used car dealer sold one car at a profit of 25 percent of   [#permalink] 08 Jul 2014, 21:08
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