enigma123 wrote:

If a brokerage firm charged a commission of 2% of the total dollar amount of a certain trade, what was the total dollar amount of that trade?

Statement 1: The dollar amount of the trade minus the brokerage firm's commission was $88000

Statement 2: The brokerage firm's commission decreased the profit earned on the trade by 20%.

Here is my approach to solve the question. I am stuck on Statement 2 which I have presented over here.

Solution:

Lets say d be the dollar amount of that trade and c be the brokerage firm's commission.

So c=0.02d

Considering statement 1 : d - c =88000

Substitute the value of c and we can find the value of d so its sufficient.

Considering Statement 2: This is where I get stuck:

Let say p be the firm's initial profit

Its decreased by 20% = p-0.20p=0.80p. After this I get lost........ Can someone please tell me if my approach is correct and how to move ahead with statement ?

Hi Enigma,

your approach is perfect ..

st1: you are right on money

St2: clearly insufficient.

profits decreased by 20% .. so its now 80%. It says commission decreased the proflt by 20%.

you just cant solve this to get total dollar value

Do let me know if you have any problem understanding this .