Author 
Message 
TAGS:

Hide Tags

Retired Moderator
Joined: 27 Oct 2017
Posts: 1263
Location: India
Concentration: International Business, General Management
GPA: 3.64
WE: Business Development (Energy and Utilities)

Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
10 Nov 2018, 10:09
Question Stats:
77% (02:00) correct 23% (02:09) wrong based on 56 sessions
HideShow timer Statistics
GMATbuster's Weekly Quant Quiz#8 Ques #4 For Questions from earlier quizzes: Click HereKaren purchased 10 shares of stock for x dollars per shares. She later sold the 10 shares for y dollars per shares but paid z percent tax on her profit. After tax, what was the profit Karen made on the sale of her stock? (1) y  x = $5000 (2) If she had paid 10 percent more tax, Karen's profit would have been $30,000.
Official Answer and Stats are available only to registered users. Register/ Login.
_________________



Current Student
Joined: 04 Jun 2018
Posts: 156
GMAT 1: 610 Q48 V25 GMAT 2: 690 Q50 V32 GMAT 3: 710 Q50 V36

Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
10 Nov 2018, 10:23
Karen purchased 10 snares of stock for x dollars per snare. She later sold the 10 snares for y dollars per snare but paid z percent tax on her profit. After tax, what was the profit Karen made on the sale of her stock? 1) y  x = $5000 2) It she had paid 10 percent more tax, Karen's profit would have been $30,000.
So: Total Cost=10x Total Sale=10y tax=z%
Profit after tax= (10y10x)(1Z%)
So we need value of yz and Z to find profit
Stat 1: No value of z. NS
Stat 2: States a relation 10(yz)(11.1z%)=30000
This is not solvable as we have 3 variables and relationship cannot be derived
Comibing: We can put value of yz to find value of z. Then finally find the value of Profit after tax



Intern
Joined: 23 May 2018
Posts: 18
Location: India
Concentration: Economics, Strategy
GPA: 4

Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
10 Nov 2018, 10:28
The question stem is : What is the profit made of reselling the stocks after deducting the tax.
Hence, we need to find Profit = (yx)*10  z% of (yx)*10. here, (yx) = difference in the price per snare.
Statement 1: yx = 5000. Hence, Profit = (5000)*10  z%(5000)*10 Thus, Statement 1 is not Sufficient.
Statement 2: if she paid 10% more tax, i.e., if she paid z+10% tax, her profit would be $30,000. => 30,000= (yx)*10  (z+10)%*(yx)*10. Thus, Statement 2 is not Sufficient.
Statement 1 & 2 together : 30,000 = (5000)*10  (z+10)%*(5000)*10 On solving, we get z=30.
Thus, Profit = 50,000  30%*50,000 = $35,000.
Hence, C , both statements together.



Senior Manager
Joined: 05 Jul 2018
Posts: 424
Location: India
Concentration: General Management, Technology
GPA: 3.6
WE: Information Technology (Consulting)

Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
10 Nov 2018, 10:47
Correct Answer is C.Statement 1 alone is not sufficient as it says nothing about z Statment 2 alone is not sufficient as it says nothing about the initial profit made Both statment together are sufficientas initial profit for 10 shares will be $5000*10= $50000 If tax deducated was Z+10% then $50k (z+10)%of 50k = $30k Hence , both statments together will give us a unique numerical value
_________________



Intern
Joined: 30 Apr 2018
Posts: 12

Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
10 Nov 2018, 10:56
Answer is C. Posted from my mobile device
Attachments
15418725574497411509349381671831.jpg [ 3.76 MiB  Viewed 577 times ]



Intern
Joined: 09 Nov 2018
Posts: 26

Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
10 Nov 2018, 10:59
OPTION C 1 Not sufficient. value of Z is unknown 2 Not sufficient. Value of z and yx is unknown C: Both combined sufficient



Intern
Joined: 31 Oct 2018
Posts: 17

Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
10 Nov 2018, 11:48
CP=10x SP=10y profit = 10y10x
tax paid = (10y10x)z/100
profit after tax(PAT)= 10y10x(10yz/100)+(10xz/100) = (1000(yx)10z(yx))/100
= (100010z)(yx)/100
st1: we know yx but we don't know z hence insufficient
st2: we know
(100010(z+10))(yx)/100=30000 (90010z)(yx)/100=30000 insufficient
using both statements, we know (yx) and z hence C



Director
Joined: 27 May 2012
Posts: 905

Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
25 Feb 2019, 10:26
gmatbusters wrote: GMATbuster's Weekly Quant Quiz#8 Ques #4 For Questions from earlier quizzes: Click HereKaren purchased 10 snares of stock for x dollars per snare. She later sold the 10 snares for y dollars per snare but paid z percent tax on her profit. After tax, what was the profit Karen made on the sale of her stock? 1) y  x = $5000 2) It she had paid 10 percent more tax, Karen's profit would have been $30,000. Dear Moderator, Minor typos in this question, you may wish to correct the same. By " snares" I suppose we mean "shares". statement 2 , " it" has been written by mistake instead of "if ". Thank you for your cooperation.
_________________



Math Expert
Joined: 02 Sep 2009
Posts: 58464

Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
Show Tags
25 Feb 2019, 10:32
stne wrote: gmatbusters wrote: GMATbuster's Weekly Quant Quiz#8 Ques #4 For Questions from earlier quizzes: Click HereKaren purchased 10 snares of stock for x dollars per snare. She later sold the 10 snares for y dollars per snare but paid z percent tax on her profit. After tax, what was the profit Karen made on the sale of her stock? 1) y  x = $5000 2) It she had paid 10 percent more tax, Karen's profit would have been $30,000. Dear Moderator, Minor typos in this question, you may wish to correct the same. By " snares" I suppose we mean "shares". statement 2 , " it" has been written by mistake instead of "if ". Thank you for your cooperation. _______________ Thank you. Edited.
_________________




Re: Karen purchased 10 snares of stock for x dollars per snare. She later
[#permalink]
25 Feb 2019, 10:32






