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Alex bought a smartwatch at $200 from his friend and sold it to anoth

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Alex bought a smartwatch at $200 from his friend and sold it to anoth  [#permalink]

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New post Updated on: 12 Aug 2018, 23:56
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Question Stats:

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3 Must Learn Applications of Percentages - Exercise Question #1

1- Alex bought a smartwatch at $200 from his friend and sold it to another friend at a certain price. What is his actual profit percentage?
    1. Alex gave a discount of 25% while selling the watch.
    2. Alex made a profit of 33.3%, when calculated on the selling price.

Options

A) Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B) Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D) EACH statement ALONE is sufficient.
E) Statements (1) and (2) TOGETHER are NOT sufficient.



To solve question 2: Question 2

To read the article: 3 Must Learn Applications of Percentages

Read More about Percentages and its application

Article-1: 3 Major Concerns Students Face in Solving Percentage Problems

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Originally posted by EgmatQuantExpert on 20 Jun 2018, 01:48.
Last edited by EgmatQuantExpert on 12 Aug 2018, 23:56, edited 2 times in total.
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Re: Alex bought a smartwatch at $200 from his friend and sold it to anoth  [#permalink]

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New post Updated on: 23 Jun 2018, 11:13

Solution



Given:
    • Alex bought a smartwatch at $200 from his friend
    • Alex sold that smartwatch to another friend at a certain price

To find:
    • The actual profit percentage of Alex

Approach and Working:
As Alex purchased the smartwatch at a price of $200, we can say:
    • The cost price of the smartwatch = $200

To find the profit percentage, we need to know the price at which Alex sold the smartwatch to his other friend. As no other information is provided in the question stem, let’s look into the analysis of the statements.

Analysing Statement 1
    • As per the information given in statement 1, Alex gave a discount of 25% while selling the watch
      o As discount is calculated on the marked price or list price, from this statement, we cannot find out the selling price of the smartwatch as the marked price or list price is not mentioned

Hence, statement 1 is not sufficient to answer the question

Analysing Statement 2
    • As per the information given in statement 2, Alex made a profit of 33.3%, when calculated on the selling price
    • If we assume the selling price to be x, then profit amount = 33.3% of x = \(\frac{1}{3} * x = \frac{x}{3}\)
    • As we have cost price ($200), profit amount (\(\frac{x}{3}\)), and selling price (x), we can write:
      o \(200 + \frac{x}{3} = x\)
      o Solving this equation, we can find out the value of x
    • Once we have the value of selling price(x), we can get the original profit percentage

Hence, statement 2 is sufficient to answer the question

Hence, the correct answer is option B.

Answer: B
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Originally posted by EgmatQuantExpert on 20 Jun 2018, 01:51.
Last edited by EgmatQuantExpert on 23 Jun 2018, 11:13, edited 1 time in total.
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Re: Alex bought a smartwatch at $200 from his friend and sold it to anoth  [#permalink]

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New post 20 Jun 2018, 04:01
To get the actual profit %, we need purchased price (already given in stem - $200) and selling price

1 stm: 0.75*initial selling price not suff. (Actually this statement seemed a bit wordy, for me it was not clear 25% discount was from selling price or from purchasing price. Finally I assumed it was from selling price)
2 stm: Selling price *66.7%=200 suff

In my opinion
Ans: B
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Re: Alex bought a smartwatch at $200 from his friend and sold it to anoth  [#permalink]

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New post 20 Jun 2018, 21:52
EgmatQuantExpert wrote:
3 Must Learn Applications of Percentages - Exercise Question #1

1- Alex bought a smartwatch at $200 from his friend and sold it to another friend at a certain price. What is his actual profit percentage?
    1. Alex gave a discount of 25% while selling the watch.
    2. Alex made a profit of 33.3%, when calculated on the selling price.

Options

A) Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B) Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D) EACH statement ALONE is sufficient.
E) Statements (1) and (2) TOGETHER are NOT sufficient.


Read More about Percentages and its application


Article-1: 3 Major Concerns Students Face in Solving Percentage Problems


So CP for Alex = 200, SP not given.

(1) Gave a discount of 1/4 on Marked Price to sell, but since we dont know the Marked price, we cannot calculate SP. Not sufficient.

(2) Suppose SP=x. Profit is = x/3. This means CP + x/3 = x
or 200 + x/3 = x. Or x=300. So profit = 100 on CP of 200, and thus actual profit percentage = 50%. Sufficient.

Hence B answer
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Re: Alex bought a smartwatch at $200 from his friend and sold it to anoth  [#permalink]

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New post 08 Jul 2018, 20:08
Statement 1: What's the discount on? a sale price of $1,000? $10,000?
Statement 2: Profit is 33.3% (1/3) so it's 4/3 of the purchase price. Profit = 4/3(200) = $266.67 which is 66/200 or 33% greater than 200.

B
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Re: Alex bought a smartwatch at $200 from his friend and sold it to anoth &nbs [#permalink] 08 Jul 2018, 20:08
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Alex bought a smartwatch at $200 from his friend and sold it to anoth

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