If a brokerage firm charged a commission of 2% of the total : GMAT Data Sufficiency (DS)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 20 Jan 2017, 10:35

### 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

# If a brokerage firm charged a commission of 2% of the total

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Director
Status: Finally Done. Admitted in Kellogg for 2015 intake
Joined: 25 Jun 2011
Posts: 536
Location: United Kingdom
Concentration: International Business, Strategy
GMAT 1: 730 Q49 V45
GPA: 2.9
WE: Information Technology (Consulting)
Followers: 74

Kudos [?]: 2965 [0], given: 217

If a brokerage firm charged a commission of 2% of the total [#permalink]

### Show Tags

10 Jul 2011, 08:03
2
This post was
BOOKMARKED
00:00

Difficulty:

15% (low)

Question Stats:

75% (01:00) correct 25% (00:45) wrong based on 73 sessions

### HideShow timer Statistics

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%. [Reveal] Spoiler: My approach 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 ? [Reveal] Spoiler: OA _________________ Best Regards, E. MGMAT 1 --> 530 MGMAT 2--> 640 MGMAT 3 ---> 610 GMAT ==> 730 Current Student Joined: 26 May 2005 Posts: 565 Followers: 18 Kudos [?]: 203 [1] , given: 13 Re: Profit of the Brokerage Firm [#permalink] ### Show Tags 10 Jul 2011, 10:05 1 This post received KUDOS 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%.

[Reveal] Spoiler: My approach
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 .
Senior Manager
Joined: 03 Mar 2010
Posts: 440
Schools: Simon '16 (M)
Followers: 5

Kudos [?]: 269 [0], given: 22

Re: Profit of the Brokerage Firm [#permalink]

### Show Tags

10 Jul 2011, 10:10
Statement 2: The brokerage firm's commission decreased the profit earned on the trade by 20%.

For statement 2: Profit = S.P - C.P
Now S.P=total dollar amount of trade=x
Let initial C.P be y
So initial profit p1=x-y
Commission earned = 2% of x = 0.02x
p2=0.02x-y
p1-p2/p1 * 100 = 20
x-y-0.02x+y/x-y * 100 = 20
0.08x/x-y =0.2
We do not know y (C.P). Hence insufficient.
_________________

My dad once said to me: Son, nothing succeeds like success.

Math Forum Moderator
Joined: 20 Dec 2010
Posts: 2021
Followers: 161

Kudos [?]: 1705 [0], given: 376

Re: Profit of the Brokerage Firm [#permalink]

### Show Tags

10 Jul 2011, 10:39
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 $88000 Statement 2: The brokerage firm's commission decreased the profit earned on the trade by 20%. Let the total amount be$x

1.
x-0.02x=88000
0.98x=88000
x=88000/0.98
Sufficient.

2.
Let the profit be P.
0.2P=0.02x
P/x=0.02/0.2=1/10
10P=x

If P=10; x=100; commission=2;
If P=20; x=200; commission=4;

We can have many such combination, each giving us a different value for x.
Not Sufficient.

Ans: "A"
_________________
Manager
Joined: 01 Jun 2011
Posts: 176
Followers: 1

Kudos [?]: 16 [0], given: 6

Re: Profit of the Brokerage Firm [#permalink]

### Show Tags

13 Jul 2011, 05:03
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%. [Reveal] Spoiler: My approach 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 ? like it. A is the answer GMAT Club Legend Joined: 09 Sep 2013 Posts: 13463 Followers: 575 Kudos [?]: 163 [0], given: 0 Re: If a brokerage firm charged a commission of 2% of the total [#permalink] ### Show Tags 25 Oct 2015, 04:47 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). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Re: If a brokerage firm charged a commission of 2% of the total [#permalink] 25 Oct 2015, 04:47 Similar topics Replies Last post Similar Topics: 3 The total charge to rent a car for one day from Company J consists of 5 14 May 2016, 16:03 1 Is the total price of the items in Andrea's shopping cart less than$2 3 20 Dec 2015, 22:32
3 For a certain car repair, the total charge consisted of a charge for p 4 21 Oct 2015, 20:39
1 A firm increases its revenues by 10% between 2008 and 2009. The firm’s 4 14 Sep 2015, 21:49
Greg buys bananas and apples for a total price of \$2.45. 1 27 May 2011, 13:51
Display posts from previous: Sort by

# If a brokerage firm charged a commission of 2% of the total

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.