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

It is currently 31 Jul 2015, 18:05
GMAT Club Tests

Close

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
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.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

If the total price of n equally priced stock shares is p,

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Director
Director
User avatar
Joined: 07 Jun 2004
Posts: 614
Location: PA
Followers: 3

Kudos [?]: 330 [0], given: 22

If the total price of n equally priced stock shares is p, [#permalink] New post 25 Nov 2010, 08:30
00:00
A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

53% (02:13) correct 47% (01:37) wrong based on 34 sessions
If the total price of n equally priced stock shares is p, what is p?

(1) If the price of each share were to increase by $1, p would increase by $40.
(2) If the price of half of the shares increased by 25 percent each, p would increase by $10.
(A) Statement (1) ALONE is sufficient, but statement (2) is not sufficient.
(B) Statement (2) ALONE is sufficient, but statement (1) is not sufficient.
(C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
(D) EACH statement ALONE is sufficient.
(E) Statements (1) and (2) TOGETHER are NOT sufficient.


I am not sure about the OA can some one explain this answer to me
[Reveal] Spoiler: OA

_________________

If the Q jogged your mind do Kudos me : )

Intern
Intern
avatar
Joined: 27 Oct 2010
Posts: 29
Followers: 0

Kudos [?]: 1 [0], given: 0

Re: Tough Algebra DS [#permalink] New post 25 Nov 2010, 13:01
I hope I read the question right, I got a bit confused with statement #2.

From the question, let n be the number of stocks, x be the price of each stock, and p is…what p is.

So our equation is nx = p, and we want n and x

1) x increase by $1, then p increase by $40, and simply implies n = 40. Not sufficient since we don’t know x

2) 25% price increase for only half of the shares and p increased by 10. So…

(1/2 n * x) + (1/2 n * 5/4 x) = p + 10
9/8 nx = p + 10

Since: nx = p, substitute nx with p in the above equation

p = 80. Sufficient.
Expert Post
Ms. Big Fat Panda
Ms. Big Fat Panda
User avatar
Status: Three Down.
Joined: 09 Jun 2010
Posts: 1923
Concentration: General Management, Nonprofit
Followers: 393

Kudos [?]: 1606 [0], given: 210

GMAT ToolKit User
Re: Tough Algebra DS [#permalink] New post 25 Nov 2010, 15:04
Expert's post
rxs0005 wrote:
If the total price of n equally priced stock shares is p, what is p?

(1) If the price of each share were to increase by $1, p would increase by $40.
(2) If the price of half of the shares increased by 25 percent each, p would increase by $10.

(A) Statement (1) ALONE is sufficient, but statement (2) is not sufficient.
(B) Statement (2) ALONE is sufficient, but statement (1) is not sufficient.
(C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
(D) EACH statement ALONE is sufficient.
(E) Statements (1) and (2) TOGETHER are NOT sufficient.


I am not sure about the OA can some one explain this answer to me


Let us assume the price of each stock to be x, then we are told that nx = p.

Statement 1:\(n (x+1) = p + 40. nx + n = p + 40\) But we know that nx = p, which means that n = 40. Insufficient.

Statement 2: \(\frac{nx}{2} + \frac{5nx}{4*2} = p + 10\)
\(\frac{4nx}{8} + \frac{5nx}{8} = p + 10\)

\(\frac{9nx}{8} = p + 10.\) But we know that nx = p. Thus we have \(\frac{9p}{8} - p = 10.\) Hence p = 80. This is sufficient and hence the answer is B.
Expert Post
Veritas Prep GMAT Instructor
User avatar
Joined: 16 Oct 2010
Posts: 5746
Location: Pune, India
Followers: 1446

Kudos [?]: 7591 [0], given: 186

Re: Tough Algebra DS [#permalink] New post 27 Nov 2010, 21:05
Expert's post
rxs0005 wrote:
If the total price of n equally priced stock shares is p, what is p?

(1) If the price of each share were to increase by $1, p would increase by $40.
(2) If the price of half of the shares increased by 25 percent each, p would increase by $10.
(A) Statement (1) ALONE is sufficient, but statement (2) is not sufficient.
(B) Statement (2) ALONE is sufficient, but statement (1) is not sufficient.
(C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
(D) EACH statement ALONE is sufficient.
(E) Statements (1) and (2) TOGETHER are NOT sufficient.


I am not sure about the OA can some one explain this answer to me


the total price of n equally priced stock shares is p

This statement tells us that the price of each share is p/n.

Stmnt 1: If the price of each share were to increase by $1, total price would increase by $40. This means 40 shares must have contributed an extra dollar each so n = 40. But no information about p. Not Sufficient.
Stmnt 2: If the price of half of the shares increased by 25 percent each, p would increase by $10
'Price of half the shares' is p/2. 25% of this is equal to $10. So (p/2)*(25/100) = 10.
p = 80. Sufficient.

Answer (B).
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199

Veritas Prep Reviews

Re: Tough Algebra DS   [#permalink] 27 Nov 2010, 21:05
    Similar topics Author Replies Last post
Similar
Topics:
8 Experts publish their posts in the topic If the total price of n equally priced shares of a certain s Bunuel 11 21 Jan 2014, 03:15
3 Experts publish their posts in the topic If the total price of n equally priced shares of a certain fozzzy 3 22 Jan 2013, 04:36
9 Experts publish their posts in the topic The price per share of Stock X increased by 10 percent over Walkabout 2 18 Dec 2012, 05:47
3 Experts publish their posts in the topic If x equally priced shares of a certain stock were valued enigma123 2 15 Mar 2012, 00:30
4 Experts publish their posts in the topic 2001, the closing price of stock A and stock B are the same. mehdiov 4 20 Aug 2010, 10:51
Display posts from previous: Sort by

If the total price of n equally priced stock shares is p,

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

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®.