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Bobby bought 2 shares, and which he sold for $96 each. If he [#permalink]
11 Dec 2010, 14:44

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Question Stats:

66% (02:32) correct
34% (01:28) wrong based on 286 sessions

Bobby bought 2 shares, and which he sold for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares Bobby had...

A) a profit of 10 B) a profit of 8 C) a loss of 8 D) a loss of 10 E) neither a profit nor a loss

Re: Profit problem [#permalink]
11 Dec 2010, 14:57

4

This post received KUDOS

Expert's post

Bobby bought 2 shares, and which he sold for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares Bobby had...

A) a profit of 10 B) a profit of 8 C) a loss of 8 D) a loss of 10 E) neither a profit nor a loss

Cost of the first stock: 96/1.2=80, so profit from it 96-80=16 Cost of the second stock: 96/0.8=120, so loss from it 96-120=-24

Re: Profit problem [#permalink]
12 Dec 2010, 04:42

1

This post received KUDOS

Expert's post

Yellow22 wrote:

Bobby bought 2 shares, and which he sold for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares Bobby had...

A) a profit of 10 B) a profit of 8 C) a loss of 8 D) a loss of 10 E) neither a profit nor a loss

I am no fan of formulas, especially the unintuitive ones still, this little formula has proved useful because of the tedious calculations involved otherwise.

When two items are sold at the same price, one at a profit of a% and other at a loss of a%, there will always be a loss of \(\frac{(a^2)}{100} %\). e.g. Here a = 20, so loss % = \(\frac{(20)^2}{100} %\) = 4%. Total Sale Price = Cost Price - Loss% of Cost Price 192*(100/96) = Cost Price Cost Price = $200 Loss = $200 - $192 = $8

Get back to me if you need the derivation of the formula above. _________________

Re: Profit problem [#permalink]
10 Sep 2011, 06:29

VeritasPrepKarishma wrote:

Yellow22 wrote:

Bobby bought 2 shares, and which he sold for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares Bobby had...

A) a profit of 10 B) a profit of 8 C) a loss of 8 D) a loss of 10 E) neither a profit nor a loss

I am no fan of formulas, especially the unintuitive ones still, this little formula has proved useful because of the tedious calculations involved otherwise.

When two items are sold at the same price, one at a profit of a% and other at a loss of a%, there will always be a loss of \(\frac{(a^2)}{100} %\). e.g. Here a = 20, so loss % = \(\frac{(20)^2}{100} %\) = 4%. Total Sale Price = Cost Price - Loss% of Cost Price 192*(100/96) = Cost Price Cost Price = $200 Loss = $200 - $192 = $8

Get back to me if you need the derivation of the formula above.

Hi Karishma,

Thanks for letting us know the formula...i wasnt aware of it...nonetheless, can you pls help me understand the usage of the formula in this particular question..

Re: Profit problem [#permalink]
11 Sep 2011, 00:27

Expert's post

DeeptiM wrote:

VeritasPrepKarishma wrote:

Yellow22 wrote:

Bobby bought 2 shares, and which he sold for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares Bobby had...

A) a profit of 10 B) a profit of 8 C) a loss of 8 D) a loss of 10 E) neither a profit nor a loss

I am no fan of formulas, especially the unintuitive ones still, this little formula has proved useful because of the tedious calculations involved otherwise.

When two items are sold at the same price, one at a profit of a% and other at a loss of a%, there will always be a loss of \(\frac{(a^2)}{100} %\). e.g. Here a = 20, so loss % = \(\frac{(20)^2}{100} %\) = 4%. Total Sale Price = Cost Price - Loss% of Cost Price 192*(100/96) = Cost Price Cost Price = $200 Loss = $200 - $192 = $8

Get back to me if you need the derivation of the formula above.

Hi Karishma,

Thanks for letting us know the formula...i wasnt aware of it...nonetheless, can you pls help me understand the usage of the formula in this particular question..

Thanks.

The formula is that when two items are sold at the same selling price, one at a profit of a% and the other at a loss of a%, there is an overall loss. The loss% = \(\frac{(a^2)}{100} %\).

Bobby bought 2 shares, and which he sold for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares Bobby had...

Here the two shares are sold at the same selling price. One at a profit of 20% and the other at a loss of 20%. So loss % = \(\frac{(20)^2}{100} %\) = 4%. But we need the amount of loss.

Total Sale price of the two shares = 2*96 = 192 Since there is a loss of 4%, the 96% of the total cost price must be the total sale price

Re: Bobby bought 2 shares, and which he sold for $96 each. If he [#permalink]
22 Jul 2014, 19:01

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Re: Bobby bought 2 shares, and which he sold for $96 each. If he [#permalink]
24 Oct 2015, 07:42

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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