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Bobby bought 2 shares, and which he sold for $96 each. If he [#permalink] ### Show Tags 11 Dec 2010, 14:44 3 This post received KUDOS 3 This post was BOOKMARKED 00:00 Difficulty: 45% (medium) Question Stats: 68% (02:29) correct 32% (01:25) wrong based on 353 sessions ### HideShow timer Statistics 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
[Reveal] Spoiler: OA
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11 Dec 2010, 14:57
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He had a loss of 20% on the sale of the second stock, so if he bought it for $y then y-0.2y=0.8y=96 --> y=96/0.8=120 --> loss y-96=120-96=24; Overall loss: 24-16=8. Hope it's clear. _________________ Intern Joined: 19 Oct 2010 Posts: 8 Followers: 0 Kudos [?]: 8 [0], given: 0 Re: Profit problem [#permalink] ### Show Tags 11 Dec 2010, 15:32 That helps! Thank you so much! Senior Manager Status: Bring the Rain Joined: 17 Aug 2010 Posts: 406 Location: United States (MD) Concentration: Strategy, Marketing Schools: Michigan (Ross) - Class of 2014 GMAT 1: 730 Q49 V39 GPA: 3.13 WE: Corporate Finance (Aerospace and Defense) Followers: 7 Kudos [?]: 45 [0], given: 46 Re: Profit problem [#permalink] ### Show Tags 11 Dec 2010, 18:48 C Great explanation _________________ Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7118 Location: Pune, India Followers: 2128 Kudos [?]: 13619 [2] , given: 222 Re: Profit problem [#permalink] ### Show Tags 12 Dec 2010, 04:42 2 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.
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Senior Manager Joined: 15 Feb 2011 Posts: 263 Followers: 4 Kudos [?]: 151 [0], given: 9 Re: Profit problem [#permalink] ### Show Tags 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..

Thanks.
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11 Sep 2011, 00:27
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

(96/100)*Cost Price = 192
Cost Price = $200 Loss =$200 - $192 =$8
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Director Joined: 01 Feb 2011 Posts: 757 Followers: 14 Kudos [?]: 114 [0], given: 42 Re: Profit problem [#permalink] ### Show Tags 11 Sep 2011, 09:12 lets say cost of each shares are x and y respectively. Selling price = 120x/100 and 80y/100 respectively = 96 120x/100 = 96 => x=80 80y/100 = 96 => y =120 => together cost = x+y = 200 together selling price = 2*96 = 192 => loss of$8

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25 Jun 2013, 23:21
Total SP = 2*96
Total CP = CP1

The formula for calculating loss % when SP is same = (x/10) ^2
So here x = 20
%loss = (20/10)^2 = 2^2 = 4% loss

We know SP = 92*2 ( 2 items)
loss % = 4
Now calc CP => SP = CP(1-loss/100) = CP (1-4/100) = CP*96/100

2*96 = CP * 96/100 => CP = 200
Total loss is 4% of CP => 4*200/100 = 8
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22 Jul 2014, 22:38
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First Share sold at 96 which includes 20% profit

Cost Price $$= \frac{96*100}{120} = 80$$

Second Share sold at 96 which includes 20% loss

Cost Price$$= \frac{96 * 100}{80} = 120$$

Total Cost Price = 120 + 80 = 200

Total Selling Price = 96 * 2 = 192

Loss = 8

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