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.

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:

John sold 100 shares of stock for $96 per share. For half [#permalink]
31 Jan 2010, 13:29

1

This post received KUDOS

1

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

35% (medium)

Question Stats:

63% (02:40) correct
37% (01:22) wrong based on 70 sessions

John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?

A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800

Re: What's the fastest way to asnwer this problem? [#permalink]
31 Jan 2010, 13:49

2

This post received KUDOS

Expert's post

GMATFIGHTER wrote:

John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?

A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800

Strange wording. Anyway:

Cost of the profitable stock: x=96/1.2=80, so profit from it 96-80=16. Total profit 50*16=800 Cost of the non-profitable stock: y=96/0.8=120, so loss from it 96-120=-24. Total loss 50*(-24)=-1200

Re: What's the fastest way to asnwer this problem? [#permalink]
31 Jan 2010, 13:53

GMATFIGHTER wrote:

John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?

a) No loss or gain

b) Gain of $400

c) Loss of $400

d) Gain of $800

e) Loss of $800

Would you guys please show me a short cut to answer this problem? A much faster approach would be appreciated! Thanks!

50 shares for 20 % loss and 50 share for 20 % profit.

For profit - > 96 = 120 % of x hence x = 80 , total profit = 50 x (96-80) = 50 x 16 For Loss - > 96 = 80 % of y hence y = 120, total loss = 50 x (120-96) = 50 x 24

Re: What's the fastest way to asnwer this problem? [#permalink]
31 Jan 2010, 22:48

GMATFIGHTER wrote:

John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?

a) No loss or gain

b) Gain of $400

c) Loss of $400

d) Gain of $800

e) Loss of $800

Would you guys please show me a short cut to answer this problem? A much faster approach would be appreciated! Thanks!

Total Selling Price = $9600

For 50 shares it is 20% profit and for other 50 it is 20% Loss.

Re: What's the fastest way to asnwer this problem? [#permalink]
14 Dec 2013, 13:14

Bunuel - apologies. But, I am struggling on this question from Veritas Arithmetic guide. See, Profit = S.P - C.P and after taking C.P as x for 1 item, I am not getting it right. Can you please explain? _________________

Re: What's the fastest way to asnwer this problem? [#permalink]
16 Dec 2013, 01:33

Expert's post

enigma123 wrote:

Bunuel - apologies. But, I am struggling on this question from Veritas Arithmetic guide. See, Profit = S.P - C.P and after taking C.P as x for 1 item, I am not getting it right. Can you please explain?

Can you please elaborate or show your work? Thank you. _________________

First of all, John sold ALL 100 shares of stock for $96 per share, not only 50 of them.

Next, cost (CP) of the profitable stock was 96/1.2 = $80 and the cost of the non-profitable stock was 96/0.8 = $120. Thus the profit was 50*(96-80) = $800 and the loss was 50*(120-96) = $1,200, which give s the overall loss of $400.