GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 13 Oct 2019, 18:07

### 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

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

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

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 58335
A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

### Show Tags

09 Oct 2018, 03:17
00:00

Difficulty:

5% (low)

Question Stats:

97% (00:31) correct 3% (00:42) wrong based on 38 sessions

### HideShow timer Statistics

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.

_________________
CEO
Status: GMATINSIGHT Tutor
Joined: 08 Jul 2010
Posts: 2974
Location: India
GMAT: INSIGHT
Schools: Darden '21
WE: Education (Education)
A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

### Show Tags

Updated on: 09 Oct 2018, 03:46
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

_________________
Prosper!!!
GMATinsight
Bhoopendra Singh and Dr.Sushma Jha
e-mail: info@GMATinsight.com I Call us : +91-9999687183 / 9891333772
Online One-on-One Skype based classes and Classroom Coaching in South and West Delhi
http://www.GMATinsight.com/testimonials.html

ACCESS FREE GMAT TESTS HERE:22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION

Originally posted by GMATinsight on 09 Oct 2018, 03:45.
Last edited by GMATinsight on 09 Oct 2018, 03:46, edited 1 time in total.
examPAL Representative
Joined: 07 Dec 2017
Posts: 1129
Re: A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

### Show Tags

09 Oct 2018, 03:45
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).
_________________
Current Student
Joined: 04 Jun 2018
Posts: 156
GMAT 1: 610 Q48 V25
GMAT 2: 690 Q50 V32
GMAT 3: 710 Q50 V36
Re: A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

### Show Tags

09 Oct 2018, 04:44
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

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.

Regards
Director
Joined: 19 Oct 2013
Posts: 520
Location: Kuwait
GPA: 3.2
WE: Engineering (Real Estate)
Re: A broker charges a brokerage which is a fixed percent of the value of  [#permalink]

### Show Tags

09 Oct 2018, 05:42
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
Re: A broker charges a brokerage which is a fixed percent of the value of   [#permalink] 09 Oct 2018, 05:42
Display posts from previous: Sort by

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

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne