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

 It is currently 07 Jul 2015, 09:56

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Gmatprep - shares of stock

Author Message
TAGS:
Intern
Joined: 04 Feb 2007
Posts: 29
Followers: 0

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

Gmatprep - shares of stock [#permalink]  04 Feb 2007, 10:35
OA: C
Attachments

2.JPG [ 35.14 KiB | Viewed 468 times ]

Senior Manager
Joined: 04 Jan 2006
Posts: 279
Followers: 1

Kudos [?]: 21 [0], given: 0

On Profitable Stock: let P is the real profit he get.
He sold $96 based on sales price of 100% + 20% = 120% (He earn 20% on this sales) Therefore, Profit/Sales Price = 20/120 = P/96 P = 96/6 = 16 On Non-Profitable Stock: Let L is the money he lost. He sold$96 based on sales price of 100% - 20% = 80% (He lost 20% on this sales)
Therefore,
Lost/Sales Price = 20/80 = L/96
L = 96/4 = 24

Total Profit = +16 - 24 = -8

This shows that he loss total of $8.00. B. is the answer. Manager Joined: 12 Feb 2006 Posts: 115 Followers: 1 Kudos [?]: 29 [0], given: 0 [#permalink] 04 Feb 2007, 20:20 Similar to devil. 96/1.20 = 80 or 16 profit 96/.8 = 120 or 24 loss 8$ loss
Manager
Joined: 10 Dec 2005
Posts: 112
Followers: 1

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

I solved it like this:

We know the Sale price of each stock that is $96 Now Profit = Sale price - Purchase price From 1st condition we know: Profit = 20%(Purchase price) Hence, 20%(Purchase price) = 96 - Purchase price 1.2(Purchase price) = 96 Purchase price = 96/1.2 = 80 Loss = Purchase price - Sale price From 2nd condition we know: Loss= 20%(Purchase price) Hence, 20%(Purchase price) = Purchase price - 96 0.8(Purchase price) = 96 Purchase price = 96/0.8 = 120 Hence his total purchase price for 2 stocks is 120+80 = 200 and he sold both the stocks for 192 Hence there is a loss of$8
_________________

"Live as if you were to die tomorrow. Learn as if you were to live forever." - Mahatma Gandhi

Similar topics Replies Last post
Similar
Topics:
GMATprep-stock code 3 26 Jul 2008, 11:06
GMATPREP: Stock 3 19 May 2008, 10:58
Bobby bought two shares of stock, which he sold for 96$2 10 Apr 2008, 21:15 Bobby bought two shares of stock which he sold for$96 each. 1 25 Nov 2007, 19:56
Last year the price per share of Stock X increased by k 3 18 Mar 2006, 20:45
Display posts from previous: Sort by