Author Message
TAGS:

### Hide Tags

Intern
Joined: 20 Oct 2009
Posts: 41
Followers: 0

Kudos [?]: 38 [3] , given: 0

John sold 100 shares of stock for $96 per share. For half [#permalink] ### Show Tags 31 Jan 2010, 13:29 3 This post received KUDOS 4 This post was BOOKMARKED 00:00 Difficulty: 55% (hard) Question Stats: 61% (02:38) correct 39% (01:24) wrong based on 377 sessions ### HideShow timer Statistics 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
[Reveal] Spoiler: OA
Math Expert
Joined: 02 Sep 2009
Posts: 36590
Followers: 7091

Kudos [?]: 93340 [6] , given: 10557

Re: What's the fastest way to asnwer this problem? [#permalink]

### Show Tags

31 Jan 2010, 13:49
6
KUDOS
Expert's post
8
This post was
BOOKMARKED
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 Total loss: 800+(-1200)=-400. Answer: C. _________________ Senior Manager Joined: 25 Jun 2009 Posts: 306 Followers: 2 Kudos [?]: 120 [1] , given: 6 Re: What's the fastest way to asnwer this problem? [#permalink] ### Show Tags 31 Jan 2010, 13:53 1 This post received KUDOS 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

Net loss = 50 x24 - 50 x 16 = 50 (8) = 400

Senior Manager
Joined: 16 Apr 2009
Posts: 339
Followers: 1

Kudos [?]: 122 [0], given: 14

Re: What's the fastest way to asnwer this problem? [#permalink]

### Show Tags

31 Jan 2010, 19:16
ayeshan wrote:

ayeshan - you look like a spammer to me who is in a rush to grab gmatclub test .

Bunuel/bb - please check his profile
_________________

Director
Joined: 03 Sep 2006
Posts: 879
Followers: 6

Kudos [?]: 772 [0], given: 33

Re: What's the fastest way to asnwer this problem? [#permalink]

### Show Tags

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.

For 20% profit
6/5*cost = 9600

cost=$80 For 20% Loss 4/5*cost = 9600 cost=$120

Total cost = $80*50 +$120*50 = 10,000

Therefore Loss = 10,000 - 9600 = $400 Senior Manager Status: mba here i come! Joined: 07 Aug 2011 Posts: 270 Followers: 42 Kudos [?]: 1058 [2] , given: 48 Re: What's the fastest way to asnwer this problem? [#permalink] ### Show Tags 28 Feb 2012, 03:27 2 This post received KUDOS 20% profit and 20% loss = $$\frac{6}{5}*\frac{4}{5} = \frac{24}{25}$$ OR 4% loss $$\frac{24}{25}x=9600$$ .... [where x is the cost] total loss [4% of cost] = $$9600*\frac{25}{24x}*\frac{4}{100} = 400$$ ans: 400 _________________ press +1 Kudos to appreciate posts 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 [?]: 2967 [0], given: 217 Re: What's the fastest way to asnwer this problem? [#permalink] ### Show Tags 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? _________________ Best Regards, E. MGMAT 1 --> 530 MGMAT 2--> 640 MGMAT 3 ---> 610 GMAT ==> 730 Math Expert Joined: 02 Sep 2009 Posts: 36590 Followers: 7091 Kudos [?]: 93340 [0], given: 10557 Re: What's the fastest way to asnwer this problem? [#permalink] ### Show Tags 16 Dec 2013, 01:33 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. _________________ 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 [?]: 2967 [0], given: 217 Re: What's the fastest way to asnwer this problem? [#permalink] ### Show Tags 22 Dec 2013, 14:29 Sure... S.P of 1 share = 96 S.P of 50 shares = 50 * 96 = 4800 C.P of 1 share = x C.P of 50 shares = 50x Profit = 4800 - 50x --------------------[S.P - C.P] = 20 % profit 20% profit = 4800 - 50x After this I struggle. can you please help? _________________ Best Regards, E. MGMAT 1 --> 530 MGMAT 2--> 640 MGMAT 3 ---> 610 GMAT ==> 730 Math Expert Joined: 02 Sep 2009 Posts: 36590 Followers: 7091 Kudos [?]: 93340 [0], given: 10557 Re: What's the fastest way to asnwer this problem? [#permalink] ### Show Tags 22 Dec 2013, 22:55 enigma123 wrote: Sure... S.P of 1 share = 96 S.P of 50 shares = 50 * 96 = 4800 C.P of 1 share = x C.P of 50 shares = 50x Profit = 4800 - 50x --------------------[S.P - C.P] = 20 % profit 20% profit = 4800 - 50x After this I struggle. can you please help? 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. Hope it's clear. _________________ Senior Manager Joined: 06 Aug 2011 Posts: 405 Followers: 2 Kudos [?]: 192 [0], given: 82 Re: John sold 100 shares of stock for$96 per share. For half [#permalink]

### Show Tags

23 Dec 2013, 01:24
simple percetage question...

96=5/4 of x (its better to write in fraction rather in percentage, I have tried in both way, bt it tuk me longer time with decimals)

x=80.

profit is of 16 dollar per share. so 16*50=800.

4/5 of x=96

x=120 (this is the value on which he purchased 50 stocks)

loss of 24 dollar per share....24*50=1200..... so 1200 loss-800 profit=net loss of 400.
_________________

Bole So Nehal.. Sat Siri Akal.. Waheguru ji help me to get 700+ score !

Current Student
Status: Everyone is a leader. Just stop listening to others.
Joined: 22 Mar 2013
Posts: 992
Location: India
GPA: 3.51
WE: Information Technology (Computer Software)
Followers: 164

Kudos [?]: 1462 [1] , given: 227

### Show Tags

13 Dec 2015, 03:03
1
KUDOS
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

Net loss = 50 x24 - 50 x 16 = 50 (8) = 400
Manager
Joined: 03 Aug 2015
Posts: 64
Concentration: Strategy, Technology
Schools: ISB '18, SPJ GMBA '17
GMAT 1: 680 Q48 V35
Followers: 1

Kudos [?]: 7 [1] , given: 204

### Show Tags

09 Jun 2016, 10:06
sabrina3509 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 Could you show a simple step by step for solving and then also show the most efficient method for solving? 50 shares for$96 gave 20% profit.
This means Cost of each share = $80. Net cost of 50 shares =$4000

50 shares for $96 gave 20% loss. This means cost of each share =$120
Net cost of 50 shares = $6000 Total net cost = 6000 + 4000 =$10000
Total net seeing price = 96*100 = 9600

Hence there is a loos of $400 Correct Option: C _________________ # Janielle Williams Customer Support Special Offer:$80-100/hr. Online Private Tutoring
GMAT On Demand Course $299 Free Online Trial Hour Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7125 Location: Pune, India Followers: 2137 Kudos [?]: 13677 [0], given: 222 Re: John sold 100 shares of stock for$96 per share. For half [#permalink]

### Show Tags

09 Jun 2016, 20:46
Expert's post
1
This post was
BOOKMARKED
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 With the same selling price, if we have a profit of a% on one and a loss of a% on another, in all we always have a loss of (a^2/100)%. This is discussed in detail here: http://www.veritasprep.com/blog/2014/04 ... n-another/ So here, we have a loss of (20^2/100)% = 4% Cost Price * 96/100 = Selling Price = 96 *100 Cost Price = 10,000 Amount of Loss = 4% of 10,000 =$400

_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Intern Status: Vice President Joined: 16 May 2016 Posts: 14 Location: India Concentration: Finance, Strategy GMAT 1: 700 Q48 V38 GPA: 2 WE: Operations (Other) Followers: 0 Kudos [?]: 0 [0], given: 115 Re: John sold 100 shares of stock for$96 per share. For half [#permalink]

### Show Tags

29 Aug 2016, 07:36
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 Very tricky question, consider this question as A person sold the same product for 4800 and on one product he gained 20% and on another product he lost 20%. In such cases there will always be overall loss and never gain. So, you can use formula Loss = (2x^2s)/(100^2-x^2) where x = common profit/loss % s = Selling price Applying the formula you will get Loss = 2*20*20*4800/(120*80) = 400 _________________ Route to 700+ Intern Joined: 28 Aug 2016 Posts: 1 Followers: 0 Kudos [?]: 1 [1] , given: 0 Re: John sold 100 shares of stock for$96 per share. For half [#permalink]

### Show Tags

29 Aug 2016, 08:17
1
KUDOS
The direct formula in such cases is : a+b+ab/100 where a and b are profit and loss.
so here a=+20 and b =-20
+20-20+20(-20)/100=4%loss
Intern
Status: Vice President
Joined: 16 May 2016
Posts: 14
Location: India
Concentration: Finance, Strategy
GMAT 1: 700 Q48 V38
GPA: 2
WE: Operations (Other)
Followers: 0

Kudos [?]: 0 [0], given: 115

### Show Tags

16 Oct 2016, 13:32
1.2x = 96$x=80 so he purchased 50 shares at the price of 80$/share

0.8y = 96$y=120 - so he purchased the other 50 at the price of 120 now 50*80 = 4000$
50*120 = 100*60 = 6000$total spent - 10,000$
total received - 9,600$net loss - 400$
Re: John sold 100 shares of stock for $96 per share. For half [#permalink] 16 Oct 2016, 13:32 Go to page 1 2 Next [ 21 posts ] Similar topics Replies Last post Similar Topics: John bought 2 shares and sold them for$96 each. If he had a profit of 2 03 Nov 2015, 12:10
9 John bought 2 shares and sold them for $96 each. If he had a profit of 7 17 Apr 2015, 03:30 17 Bobby bought 2 shares, and which he sold for$96 each. If he 16 11 Dec 2010, 14:44
45 Last year the price per share of Stock X increased by k perc 8 25 Mar 2009, 22:06
6 Last year the price per share of Stock X increased by k 5 07 Dec 2007, 17:39
Display posts from previous: Sort by