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02 Dec 2014, 08:13
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Difficulty:

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Question Stats:

83% (01:19) correct 17% (00:58) wrong based on 35 sessions

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Tough and Tricky questions: Word Problems.

A lady sold two small investment properties, A and B, for $24,000 each. If she sold property A for 20 percent more than she paid for it, and sold property B for 20 percent less than she paid for it, then, in terms of the net financial effect of these two investments (excluding taxes and expenses), we can conclude that the lady A) broke even B) had an overall gain of$1,200
C) had an overall loss of $1,200 D) had an overall gain of$2,000
E) had an overall loss of $2,000 Kudos for a correct solution. Source: Chili Hot GMAT [Reveal] Spoiler: OA _________________ Manager Joined: 12 Sep 2014 Posts: 167 Concentration: Strategy, Leadership GMAT 1: 740 Q49 V41 GPA: 3.94 Re: A lady sold two small investment properties, A and B, for$24,000 each [#permalink]

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02 Dec 2014, 09:14
Let's look at the investments individually.

A was sold for 20% more than it was bought for. This means $24,000 equals 120% of the buy price (means she bought it for$20,000).
B was sold for 20% less than it was bought for. This means $24,000 equals 80% of the buy price (means she bought it for$30,000).

Overall, she bought for $50,000 and sold for$48,000--netting a loss of $2,000. E SVP Status: The Best Or Nothing Joined: 27 Dec 2012 Posts: 1844 Location: India Concentration: General Management, Technology WE: Information Technology (Computer Software) Re: A lady sold two small investment properties, A and B, for$24,000 each [#permalink]

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02 Dec 2014, 19:10
Answer = E) had an overall loss of $2,000 Cost Price of 20% profit property $$= 24000 * \frac{100}{120} = 20000$$ Cost Price of 20% loss property$$= 24000 * \frac{100}{80} = 30000$$ Total cost price = 30000+20000 = 50000 Total sales price = 24000*2 = 48000 Loss = 50000-48000 = 2000 _________________ Kindly press "+1 Kudos" to appreciate Non-Human User Joined: 09 Sep 2013 Posts: 14188 Re: A lady sold two small investment properties, A and B, for$24,000 each [#permalink]

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28 Dec 2017, 02:27
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