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Karen purchased 10 snares of stock for x dollars per snare. She later

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Karen purchased 10 snares of stock for x dollars per snare. She later  [#permalink]

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New post 10 Nov 2018, 10:09
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  25% (medium)

Question Stats:

80% (02:05) correct 20% (02:14) wrong based on 45 sessions

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GMATbuster's Weekly Quant Quiz#8 Ques #4


For Questions from earlier quizzes: Click Here


Karen 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.

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

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New post 10 Nov 2018, 10:23
1
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= (10y-10x)(1-Z%)

So we need value of y-z and Z to find profit

Stat 1:
No value of z. NS

Stat 2:
States a relation
10(y-z)(1-1.1z%)=30000

This is not solvable as we have 3 variables and relationship cannot be derived

Comibing:
We can put value of y-z to find value of z.
Then finally find the value of Profit after tax
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Re: Karen purchased 10 snares of stock for x dollars per snare. She later  [#permalink]

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New post 10 Nov 2018, 10:28
1
The question stem is : What is the profit made of reselling the stocks after deducting the tax.

Hence, we need to find Profit = (y-x)*10 - z% of (y-x)*10.
here, (y-x) = difference in the price per snare.

Statement 1: y-x = 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= (y-x)*10 - (z+10)%*(y-x)*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.
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Re: Karen purchased 10 snares of stock for x dollars per snare. She later  [#permalink]

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New post 10 Nov 2018, 10:47
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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
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Re: Karen purchased 10 snares of stock for x dollars per snare. She later  [#permalink]

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New post 10 Nov 2018, 10:56
Answer is C.

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

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

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New post 10 Nov 2018, 11:48
CP=10x
SP=10y
profit = 10y-10x

tax paid = (10y-10x)z/100

profit after tax(PAT)= 10y-10x-(10yz/100)+(10xz/100)
= (1000(y-x)-10z(y-x))/100

= (1000-10z)(y-x)/100

st1: we know y-x but we don't know z
hence insufficient

st2:
we know

(1000-10(z+10))(y-x)/100=30000
(900-10z)(y-x)/100=30000
insufficient

using both statements, we know (y-x) and z
hence C
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Re: Karen purchased 10 snares of stock for x dollars per snare. She later  [#permalink]

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New post 25 Feb 2019, 10:26
1
gmatbusters wrote:

GMATbuster's Weekly Quant Quiz#8 Ques #4


For Questions from earlier quizzes: Click Here


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.


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

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New post 25 Feb 2019, 10:32
stne wrote:
gmatbusters wrote:

GMATbuster's Weekly Quant Quiz#8 Ques #4


For Questions from earlier quizzes: Click Here


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.


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