It is currently 17 Oct 2017, 01:13

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# A used car dealer sold one car at a profit of 25 percent of

Author Message
TAGS:

### Hide Tags

Intern
Joined: 16 Jul 2008
Posts: 13

Kudos [?]: 37 [5], given: 0

A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

23 Jul 2008, 22:15
5
KUDOS
25
This post was
BOOKMARKED
00:00

Difficulty:

35% (medium)

Question Stats:

69% (01:23) correct 31% (01:10) wrong based on 1056 sessions

A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined? A. 1000 profit B. 2000 profit C. 1000 loss D. 2000 loss E. 3334 loss [Reveal] Spoiler: OA Kudos [?]: 37 [5], given: 0 Director Joined: 27 May 2008 Posts: 541 Kudos [?]: 363 [6], given: 0 Re: Easy percentage problem...but whats the easiest way to solve [#permalink] ### Show Tags 23 Jul 2008, 23:23 6 This post received KUDOS 11 This post was BOOKMARKED djdela wrote: A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for$20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

a) 1000 profit
b) 2000 profit
c) 1000 loss
d) 2000 loss
e) 3334 loss

car 1 :
P1*1.25 = 20000
P1 = 16000

car2
P2*0.8 = 20000
P2 = 25000

P1+P2 = 41000
Final sale = 40000

1000 loss .. option C

Kudos [?]: 363 [6], given: 0

Manager
Joined: 27 Oct 2009
Posts: 141

Kudos [?]: 106 [0], given: 18

Location: Montreal
Schools: Harvard, Yale, HEC
I am angry at this question [#permalink]

### Show Tags

04 Jan 2011, 18:37
For me, the key to solve this problem is to know which amount to subtract from. Its easy to calculate the two amount of 41000 and 40000 but if you subtract 40000 from 41000 then you will have a profit of 1000 and vice-versa.

My question is what determines which one is the reference point???

Thanks guys.

Kudos [?]: 106 [0], given: 18

Math Expert
Joined: 02 Sep 2009
Posts: 41872

Kudos [?]: 128493 [6], given: 12179

Re: I am angry at this question [#permalink]

### Show Tags

05 Jan 2011, 07:53
6
KUDOS
Expert's post
9
This post was
BOOKMARKED
ezinis wrote:
For me, the key to solve this problem is to know which amount to subtract from. Its easy to calculate the two amount of 41000 and 40000 but if you subtract 40000 from 41000 then you will have a profit of 1000 and vice-versa.

My question is what determines which one is the reference point???

Thanks guys.

A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined? a) 1000 profit b) 2000 profit c) 1000 loss d) 2000 loss e) 3334 loss A dealer sold one car at a profit of 25% of the dealers purchase price for that car, let's say $$p_1$$, for$20,000 --> $$p_1*1.25=20,000$$ --> $$p_1=16,000$$ --> $$profit=selling \ price-purchase \ price=20,000-16,000=4,000$$;

A dealer sold another car at a loss of 20% of the dealers purchase price for that car, let's say $$p_2$$, again for $20,000 --> $$p_2*0.8=20,000$$ --> $$p_2=25,000$$ --> $$loss=purchase \ price-selling \ price=25,000-20,000=5,000$$; Overall loss 5,000-4,000=1,000. Or the way you are doing: the cars were purchased for $$p_1+p_2=16,000+25,000=41,000$$, and sold for $$20,000+20,000=40,000$$ so the overall loss is $$41,000-40,000=1,000$$. Answer: C. Hope it's clear. _________________ Kudos [?]: 128493 [6], given: 12179 Manager Joined: 27 Oct 2009 Posts: 141 Kudos [?]: 106 [0], given: 18 Location: Montreal Schools: Harvard, Yale, HEC Re: Easy percentage problem...but whats the easiest way to solve [#permalink] ### Show Tags 05 Jan 2011, 08:13 oh yeah, it helps. Well done. Thanks +1 Kudos [?]: 106 [0], given: 18 Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7668 Kudos [?]: 17321 [14], given: 232 Location: Pune, India Re: Easy percentage problem...but whats the easiest way to solve [#permalink] ### Show Tags 05 Jan 2011, 12:00 14 This post received KUDOS Expert's post 4 This post was BOOKMARKED djdela wrote: A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for$20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

a) 1000 profit
b) 2000 profit
c) 1000 loss
d) 2000 loss
e) 3334 loss

Logical approach:

Car 1 - profit of 25% i.e. 1/4 i.e. 1 part profit for 4 parts of cost price. So selling price ($20,000) has total 5 parts (each being$4000) out of which 1 part is profit i.e. $4000. Car 2 - loss of 20% i.e. 1/5 i.e. 1 part of loss out of 5 parts of cost price was removed to get selling price ($20,000) which has 4 parts now. So each part is $5000 and the loss is 1 part i.e.$5000.

Overall, loss of $5000 -$4000 = $1000 _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

Veritas Prep Reviews

Kudos [?]: 17321 [14], given: 232

Manager
Joined: 27 Oct 2011
Posts: 184

Kudos [?]: 210 [0], given: 4

Location: United States
Concentration: Finance, Strategy
GPA: 3.7
WE: Account Management (Consumer Products)
Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

18 Apr 2012, 19:59
Great answer guys, you have to be sure you set your equations right. I mistakenly did 20,000 - P2 = .2P2 which is wrong cause it should be -.2P2.
_________________

DETERMINED TO BREAK 700!!!

Kudos [?]: 210 [0], given: 4

Math Expert
Joined: 02 Sep 2009
Posts: 41872

Kudos [?]: 128493 [0], given: 12179

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

14 Aug 2013, 02:44
Bumping for review and further discussion.
_________________

Kudos [?]: 128493 [0], given: 12179

Intern
Joined: 21 Mar 2013
Posts: 14

Kudos [?]: 3 [0], given: 13

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

01 Mar 2014, 14:05
Bunuel wrote:
Bumping for review and further discussion.

20.000 * (25%-20%) = 5% * 20.000 = 1.000

Kudos [?]: 3 [0], given: 13

SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1853

Kudos [?]: 2612 [0], given: 193

Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

08 Jul 2014, 22:08
mariofelix wrote:
Bunuel wrote:
Bumping for review and further discussion.

20.000 * (25%-20%) = 5% * 20.000 = 1.000

This method will not tell if its loss or profit; I believe we require to do the whole computation (as did by Bunuel, others)
_________________

Kindly press "+1 Kudos" to appreciate

Kudos [?]: 2612 [0], given: 193

Intern
Joined: 02 Jan 2015
Posts: 33

Kudos [?]: 21 [0], given: 54

GMAT Date: 02-08-2015
GPA: 3.7
WE: Management Consulting (Consulting)
Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

24 Jan 2015, 06:50
Would it be possible to use the answer choices in this question? It seems that backsolving would be cumbersome but it is possible? Thanks.

Incidentally, you can save a small amount of calculation time by solving directly for the profit / loss (see below).

20,000 = 1.25x
So 0.25x = the profit for this car
0.25 = 1.25/5
20,000/5 = 4,000 profit

20,000 = 0.8y
So 0.2y = the loss for this car
0.2y = 0.8y/4
20,000/4 = 5,000 loss

Overall profit / loss = 4,000 - 5,000 = 1,000

Kudos [?]: 21 [0], given: 54

Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 7668

Kudos [?]: 17321 [0], given: 232

Location: Pune, India
Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

26 Jan 2015, 04:12
Expert's post
1
This post was
BOOKMARKED
ElCorazon wrote:
Would it be possible to use the answer choices in this question? It seems that backsolving would be cumbersome but it is possible? Thanks.

Incidentally, you can save a small amount of calculation time by solving directly for the profit / loss (see below).

20,000 = 1.25x
So 0.25x = the profit for this car
0.25 = 1.25/5
20,000/5 = 4,000 profit

20,000 = 0.8y
So 0.2y = the loss for this car
0.2y = 0.8y/4
20,000/4 = 5,000 loss

Overall profit / loss = 4,000 - 5,000 = 1,000

There is no reason why you should use the options in this question since it is easy to see how to proceed from the given data in the question whereas it is very difficult to decide how to proceed from the options.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Kudos [?]: 17321 [0], given: 232 Intern Joined: 20 Dec 2014 Posts: 22 Kudos [?]: 3 [0], given: 31 Re: A used car dealer sold one car at a profit of 25 percent of [#permalink] ### Show Tags 16 Mar 2015, 14:10 Let P = Purchase Price Car 1 Profit:$20,000= (25/100) P + P => $20,000 = (1/4)P+P =>$20,000 = 5/4P

P= $16,000$20,000-$16,000=$4,000 profit

Car 2 Profit: $20,000 = P - (20/100)P =>$20,000= P - (1/5)P => $20,000 = 4/5P P=$25,000

$20,000 -$25,000 = $5,000 loss$4,000 - $5,000 =$1,000 loss

Kudos [?]: 3 [0], given: 31

GMAT Club Legend
Joined: 09 Sep 2013
Posts: 16767

Kudos [?]: 273 [0], given: 0

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

15 Apr 2016, 03:57
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

Kudos [?]: 273 [0], given: 0

GMAT Club Legend
Joined: 09 Sep 2013
Posts: 16767

Kudos [?]: 273 [0], given: 0

Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

15 Apr 2017, 09:24
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

Kudos [?]: 273 [0], given: 0

Manager
Joined: 23 Dec 2013
Posts: 235

Kudos [?]: 11 [0], given: 21

Location: United States (CA)
GMAT 1: 760 Q49 V44
GPA: 3.76
Re: A used car dealer sold one car at a profit of 25 percent of [#permalink]

### Show Tags

25 Jun 2017, 18:09
djdela wrote:
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for \$20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

A. 1000 profit
B. 2000 profit
C. 1000 loss
D. 2000 loss
E. 3334 loss

Car 1:
20000 = 1.25P

P = 16000

profit = 20000 - 16000 = 4000

Car 2:
20000 = 0.8P

200000 = 8P

100000 = 4P

25000 = P

profit = -5000

Combined 1+2:

4000 - 5000 = -1000

Kudos [?]: 11 [0], given: 21

Re: A used car dealer sold one car at a profit of 25 percent of   [#permalink] 25 Jun 2017, 18:09
Display posts from previous: Sort by