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For each home sold in County X, the buyer and the seller each must pay

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Joined: 26 Oct 2016
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Location: United States
Concentration: Marketing, International Business
Schools: HBS '19
GMAT 1: 770 Q51 V44
GPA: 4
WE: Education (Education)
For each home sold in County X, the buyer and the seller each must pay [#permalink]

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New post 10 Feb 2017, 10:25
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  5% (low)

Question Stats:

88% (00:50) correct 13% (01:06) wrong based on 48 sessions

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For each home sold in County X, the buyer and the seller each must pay to County X a tax of 0.5 percent of the sale price of the home. Colleen recently sold her old home and bought a new home, both in County X. What was the total tax that Colleen paid to County X on these home sales?
(1) Colleen's old home had a sale price of $169,500.
(2) Colleen's new home had a sale price 20% greater than that of her old home.
[Reveal] Spoiler: OA

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Anaira Mitch

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Re: For each home sold in County X, the buyer and the seller each must pay [#permalink]

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New post 10 Feb 2017, 16:56
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anairamitch1804 wrote:
For each home sold in County X, the buyer and the seller each must pay to County X a tax of 0.5 percent of the sale price of the home. Colleen recently sold her old home and bought a new home, both in County X. What was the total tax that Colleen paid to County X on these home sales?
(1) Colleen's old home had a sale price of $169,500.
(2) Colleen's new home had a sale price 20% greater than that of her old home.

Dear anairamitch1804,

I'm happy to help. :-)

The set up in this problem exemplifies a complaint I used to hear on the East Coast of the US: "They get ya comin' and goin'!" (a little American slang that will NOT be on the GMAT).

Under these bizarre county rules, Colleen will owe two taxes, one as a home seller and one as a home buyer. In order to know the total tax, we would need to know both the price of the house that she sold and the price of the house that she bought.

Statement #1: gives us the price of the old home, but not the new home. Alone, by itself, this statement is not sufficient.
Now, forget all about #1.
Statement #2: this relates the two prices, but now we don't have a single dollar amount. Alone, by itself, this statement is also not sufficient.

Combined statements:
From #1, we know the price of the old house. From #2, we could use the price of the old house to compute the price of the new house. Once we have both prices, that's what we need to answer the prompt question. Combined, the statements are sufficient.

OA = (C)

Does all this make sense?
Mike :-)
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Mike McGarry
Magoosh Test Prep

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Re: For each home sold in County X, the buyer and the seller each must pay   [#permalink] 10 Feb 2017, 16:56
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