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A broker charges a brokerage which is a fixed percent of the value of

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A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

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New post 09 Oct 2018, 02:17
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Question Stats:

96% (00:29) correct 4% (00:42) wrong based on 33 sessions

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A broker charges a brokerage which is a fixed percent of the value of a property. The brokerage was what percent of the value of the property?

(1) The property values $1.8 million.
(2) The broker charged $3,000 as the brokerage.

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A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

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New post Updated on: 09 Oct 2018, 02:46
Bunuel wrote:
A broker charges a brokerage which is a fixed percent of the value of a property. The brokerage was what percent of the value of the property?

(1) The property values $1.8 million.
(2) The broker charged $3,000 as the brokerage.



Question: The brokerage was what percent of the value of the property?

Statement 1: The property values $1.8 million.

The brokerage percentage can't be calculated unless we also know the amount of brokerage on this property hence

NOT SUFFICIENT

Statement 2: The broker charged $3,000 as the brokerage

But we don't know the worth of the property on which th ebrokerage is charged hence

NOT SUFFICIENT

Combining the two statements

Property Worth = $1.8 million
Brokerage = $3000

Now we can calculate the brokerage as percentage of property worth (= 3000*100/1.8*1000000 = 0.167%) hence

SUFFICIENT

Answer: Option C
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Originally posted by GMATinsight on 09 Oct 2018, 02:45.
Last edited by GMATinsight on 09 Oct 2018, 02:46, edited 1 time in total.
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Re: A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

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New post 09 Oct 2018, 02:45
Bunuel wrote:
A broker charges a brokerage which is a fixed percent of the value of a property. The brokerage was what percent of the value of the property?

(1) The property values $1.8 million.
(2) The broker charged $3,000 as the brokerage.


The answer is C.
This question can be easily solved using the logical approach - checking whether we have enough data, without trying to solve.
the question describes an equation with three variables - the property value, the fixed percent, and the actual brokerage fee (Value*(fixed percent) = brokerage fee). To find one variable (the percent), we must have the other two.
(1) and (2) are clearly both insufficient on their own, as they each only give us one of the variables we need.
Combined, however, we have two variables - enough to find the third! the answer is (C).
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Re: A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

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New post 09 Oct 2018, 03:44
GMATinsight wrote:
Bunuel wrote:
A broker charges a brokerage which is a fixed percent of the value of a property. The brokerage was what percent of the value of the property?

(1) The property values $1.8 million.
(2) The broker charged $3,000 as the brokerage.



Question: The brokerage was what percent of the value of the property?

Statement 1: The property values $1.8 million.

The brokerage percentage can't be calculated unless we also know the amount of brokerage on this property hence

NOT SUFFICIENT

Statement 2: The broker charged $3,000 as the brokerage

But we don't know the worth of the property on which th ebrokerage is charged hence

NOT SUFFICIENT

Combining the two statements

Property Worth = $1.8 million
Brokerage = $3000

Now we can calculate the brokerage as percentage of property worth (= 3000*100/1.8*1000000 = 0.167%) hence

SUFFICIENT

Answer: Option C





Yes the answer sure seems to be C.
But how can we say that the brokerage that was charged was on the property. Since brokerage is a percentage on the property, there is definitely a possibility that the brokerage 3000 is not on the property 1.8 million.
Hence I feel the answer should be E.
Perhaps Bunuel can clear out this confusion in the question to make it unambigious
Or correct me if I am not getting something.

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Re: A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

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New post 09 Oct 2018, 04:42
Bunuel wrote:
A broker charges a brokerage which is a fixed percent of the value of a property. The brokerage was what percent of the value of the property?

(1) The property values $1.8 million.
(2) The broker charged $3,000 as the brokerage.


let the brokerage fee be A the percentage of brokerage would be B and the value of property be C.

\(A = \frac{B}{100} * C\)

I cannot find B without knowing both A and C.

Hence 1) and 2) are insufficient alone.

Together it is sufficient.

C
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Re: A broker charges a brokerage which is a fixed percent of the value of   [#permalink] 09 Oct 2018, 04:42
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