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Karen purchased 10 snares of stock for x dollars per snare. She later
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10 Nov 2018, 10:09
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 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.
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Re: Karen purchased 10 snares of stock for x dollars per snare. She later
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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



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



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Re: Karen purchased 10 snares of stock for x dollars per snare. She later
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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
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Re: Karen purchased 10 snares of stock for x dollars per snare. She later
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10 Nov 2018, 10:56
Answer is C. Posted from my mobile device
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Re: Karen purchased 10 snares of stock for x dollars per snare. She later
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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



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



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




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