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

It is currently 17 Aug 2018, 04:15

Close

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
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.

Close

Request Expert Reply

Confirm Cancel

A trader, While selling an item, was asking for such a price that woul

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

Hide Tags

Manager
Manager
User avatar
G
Joined: 09 Jan 2016
Posts: 120
GPA: 3.4
WE: General Management (Human Resources)
A trader, While selling an item, was asking for such a price that woul  [#permalink]

Show Tags

New post 11 Sep 2017, 09:48
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

65% (01:38) correct 35% (01:41) wrong based on 46 sessions

HideShow timer Statistics

A trader, While selling an item, was asking for such a price that would enable him to of, a 20% discount and still make a profit of 30% on cost. If the cost of the item was $50 what was his asking price?
A. 65
B. 81.25
C. 85
D. 90
E. 78
Senior Manager
Senior Manager
User avatar
P
Joined: 02 Jul 2017
Posts: 294
GMAT 1: 730 Q50 V38
GMAT ToolKit User
Re: A trader, While selling an item, was asking for such a price that woul  [#permalink]

Show Tags

New post 11 Sep 2017, 10:02
1
Let selling price be s and original cost price is c

so trader giving 20% discount on selling price => price = 80% of s = 0.8s
Now this price should give him 30% profit on cost. So price need to be equal to (1+30/100) c = 1.3c

So trader wants 0.8s =1.3c

As given c = $50
=> 0.8s = 1.3 *50
=> s= 81.25

Answer: B
Senior Manager
Senior Manager
User avatar
G
Joined: 19 Apr 2016
Posts: 274
Location: India
GMAT 1: 570 Q48 V22
GMAT 2: 640 Q49 V28
GPA: 3.5
WE: Web Development (Computer Software)
Re: A trader, While selling an item, was asking for such a price that woul  [#permalink]

Show Tags

New post 11 Sep 2017, 10:04
81.25

Profit on cost price of 30% => 50*1.3=65

Now this profit will be after offering a discount of 20%
Therefore 65=0.8*x
X=81.25

Sent from my Redmi Note 4 using GMAT Club Forum mobile app
Director
Director
User avatar
P
Joined: 27 May 2012
Posts: 531
Premium Member
Re: A trader, While selling an item, was asking for such a price that woul  [#permalink]

Show Tags

New post 07 Dec 2017, 05:25
Chemerical71 wrote:
A trader, While selling an item, was asking for such a price that would enable him to of, a 20% discount and still make a profit of 30% on cost. If the cost of the item was $50 what was his asking price?
A. 65
B. 81.25
C. 85
D. 90
E. 78


Basically in this question, asking price is the S.P.

S.P - C.P = net profit ( main equation )

S.P or A.P = \(\frac{80}{100}\)* S.P.

C.P = 50

And Net Profit = 15

because net profit is 30 % of C.P. -> i.e. 30% of 50 = 15

Putting in main equation we get
\(\frac{80}{100}*\) S.P - 50 = 15

S.P or asking Price is 81.25

Hope it helps .
_________________

- Stne

Intern
Intern
avatar
S
Joined: 12 Oct 2017
Posts: 39
Re: A trader, While selling an item, was asking for such a price that woul  [#permalink]

Show Tags

New post 07 Dec 2017, 06:24
To make a profit of 30% on cost.=> the price must be: 50*1.3 = $65
However, he offer a 20% discount => $65 = 0.8*the asking price = 4/5 * asking price.
=> The asking price = 65*5/4. We don't have to calculate since we know that the price will be $X.25 =>only option B satisfies.
Hence the answer is B.
Re: A trader, While selling an item, was asking for such a price that woul &nbs [#permalink] 07 Dec 2017, 06:24
Display posts from previous: Sort by

A trader, While selling an item, was asking for such a price that woul

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

Events & Promotions

PREV
NEXT


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

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

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.