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 Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

Assume that the cost price of the item is x. Then the trader pays x(1-20/100) = 0.8x for it. Therefore gain made in buying the item = x - 0.8x = 0.2x Next, he sells it for a 25% gain. So he sells it at 0.8x(1+25/100) = x. Gain made while selling = x - 0.8x = 0.2x

Total gain = 0.2x + 0.2x = 0.4x Cost price = 0.8x Therefore % gain = 0.4x/0.8x = 50% _________________

Assume trader started with X amount of money. After buying, he had 1.2X. After selling he had 1.25(1.2X) = 1.5X. So he made 50%.

The logic i was using was as follows :

original Price (OP) was 100 units @ 1/- . OP= 100/- Buying price - 120 units for 100/- (he used false measures, hence reducing the quantitiy and not the amount) selling price - 90 units for 100/- Gain = SP-BP = (100/90) - (100/120) = 10/36 Gain% is gain/BP = (10/36)/(100/90) = 25%

What is wrong with what I am doing ?Thanks in advance

Assume trader started with X amount of money. After buying, he had 1.2X. After selling he had 1.25(1.2X) = 1.5X. So he made 50%.

The logic i was using was as follows :

original Price (OP) was 100 units @ 1/- . OP= 100/- Buying price - 120 units for 100/- (he used false measures, hence reducing the quantitiy and not the amount) selling price - 90 units for 100/- Gain = SP-BP = (100/90) - (100/120) = 10/36 Gain% is gain/BP = (10/36)/(100/90) = 25%

What is wrong with what I am doing ?Thanks in advance

I will tell you the direct method of doing this but first let me explain what's wrong with your method. Remember that the gain is in terms of money, not in terms of units. original Price (OP) was 100 units @ 1/- . OP= $100/- Buying price - 120 units for $100/- (he used false measures, hence reducing the quantitiy and not the amount) The value of 120 units is $120 so his gain is $20/$100 = 25%

selling price - 90 units for 100/- Gain = SP-BP = (100/90) - (100/120) = 10/36 Gain% is gain/BP = (10/36)/(100/90) = 25%

When he sells, he gains 25% by using false measures. For $100, he should have given the customer 100 units but he gives only 80 units to get a 25% gain. His cost price of 80 units is $80 and selling price is $100 so gain = 20/80 * 100 = 25%

So he sells 80 units for $100 He will sell 120 units for $(100/80) * 120 = $150

How much did he pay for these 120 units? Only $100 (again because he used false measures) Gain = (50/100) *100= 50%

You can also do this directly. There are 2 consecutive gains -> 20% and 25% Overall gain = a + b + ab/100 = 20 + 25 + 20*25/100 = 50% To check out how we arrive at this formula, see: http://www.veritasprep.com/blog/2011/02 ... e-changes/ _________________

Assume trader started with X amount of money. After buying, he had 1.2X. After selling he had 1.25(1.2X) = 1.5X. So he made 50%.

The logic i was using was as follows :

original Price (OP) was 100 units @ 1/- . OP= 100/- Buying price - 120 units for 100/- (he used false measures, hence reducing the quantitiy and not the amount) selling price - 90 units for 100/- Gain = SP-BP = (100/90) - (100/120) = 10/36 Gain% is gain/BP = (10/36)/(100/90) = 25%

What is wrong with what I am doing ?Thanks in advance

I will tell you the direct method of doing this but first let me explain what's wrong with your method. Remember that the gain is in terms of money, not in terms of units. original Price (OP) was 100 units @ 1/- . OP= $100/- Buying price - 120 units for $100/- (he used false measures, hence reducing the quantitiy and not the amount) The value of 120 units is $120 so his gain is $20/$100 = 25%

selling price - 90 units for 100/- Gain = SP-BP = (100/90) - (100/120) = 10/36 Gain% is gain/BP = (10/36)/(100/90) = 25%

When he sells, he gains 25% by using false measures. For $100, he should have given the customer 100 units but he gives only 80 units to get a 25% gain. His cost price of 80 units is $80 and selling price is $100 so gain = 20/80 * 100 = 25%

So he sells 80 units for $100 He will sell 120 units for $(100/80) * 120 = $150

How much did he pay for these 120 units? Only $100 (again because he used false measures) Gain = (50/100) *100= 50%

You can also do this directly. There are 2 consecutive gains -> 20% and 25% Overall gain = a + b + ab/100 = 20 + 25 + 20*25/100 = 50% To check out how we arrive at this formula, see: http://www.veritasprep.com/blog/2011/02 ... e-changes/

That was really helpful Karishma, Thanks s ton for this

http://blog.ryandumlao.com/wp-content/uploads/2016/05/IMG_20130807_232118.jpg The GMAT is the biggest point of worry for most aspiring applicants, and with good reason. It’s another standardized test when most of us...

I recently returned from attending the London Business School Admits Weekend held last week. Let me just say upfront - for those who are planning to apply for the...