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Updated on: 12 Aug 2018, 23:56
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Difficulty:

45% (medium)

Question Stats:

61% (01:09) correct 39% (00:49) wrong based on 77 sessions

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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 _________________ Register for free sessions Number Properties | Algebra |Quant Workshop Success Stories Guillermo's Success Story | Carrie's Success Story Ace GMAT quant Articles and Question to reach Q51 | Question of the week Must Read Articles Number Properties – Even Odd | LCM GCD Word Problems – Percentage 1 | Percentage 2 | Time and Work 1 | Time and Work 2 | Time, Speed and Distance 1 | Time, Speed and Distance 2 Advanced Topics- Permutation and Combination 1 | Permutation and Combination 2 | Permutation and Combination 3 | Probability Geometry- Triangles 1 | Triangles 2 | Triangles 3 | Common Mistakes in Geometry Algebra- Wavy line Practice Questions Number Properties 1 | Number Properties 2 | Algebra 1 | Geometry | Prime Numbers | Absolute value equations | Sets | '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com 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. e-GMAT Representative Joined: 04 Jan 2015 Posts: 1900 Re: Alex bought a smartwatch at$200 from his friend and sold it to anoth  [#permalink]

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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.

_________________

Number Properties | Algebra |Quant Workshop

Success Stories
Guillermo's Success Story | Carrie's Success Story

Ace GMAT quant
Articles and Question to reach Q51 | Question of the week

Number Properties – Even Odd | LCM GCD
Word Problems – Percentage 1 | Percentage 2 | Time and Work 1 | Time and Work 2 | Time, Speed and Distance 1 | Time, Speed and Distance 2
Advanced Topics- Permutation and Combination 1 | Permutation and Combination 2 | Permutation and Combination 3 | Probability
Geometry- Triangles 1 | Triangles 2 | Triangles 3 | Common Mistakes in Geometry
Algebra- Wavy line

Practice Questions
Number Properties 1 | Number Properties 2 | Algebra 1 | Geometry | Prime Numbers | Absolute value equations | Sets

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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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Joined: 13 Feb 2018
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Re: Alex bought a smartwatch at $200 from his friend and sold it to anoth [#permalink] Show Tags 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] Show Tags 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.

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.

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