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