GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 22 Oct 2019, 06:54 GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.  John bought 2 shares and sold them for \$96 each. If he had a profit of

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

Hide Tags

Math Expert V
Joined: 02 Sep 2009
Posts: 58429
John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

1
8 00:00

Difficulty:   25% (medium)

Question Stats: 77% (02:03) correct 23% (01:57) wrong based on 161 sessions

HideShow timer Statistics

John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

Kudos for a correct solution.

_________________
Manager  Joined: 18 Dec 2014
Posts: 99
Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

2
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

Sold both shares for \$96 each, 1 20% profit, 1 20% loss.

96% for 20% profit:
96 = 1.2x
x = 80
96 - 80 = 16 profit

96% for 20% loss:
96 = 0.8x
x = 120
120 - 96 = 24 loss

24 loss - 16 profit = 8 loss.

C.
Retired Moderator B
Status: On a mountain of skulls, in the castle of pain, I sit on a throne of blood.
Joined: 30 Jul 2013
Posts: 300
John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

Kudos for a correct solution.

\$ Profit of the share sold at 20% profit =
120-96
20-?
\$16 profit on the sale of 1 share.

\$ Loss of the share sold at 20% loss=
80-96
20-?
\$24 loss on the sale of 1 share.

16-24=Loss of \$8

Intern  Joined: 20 Mar 2015
Posts: 1
GMAT 1: 720 Q50 V38 Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

1
Sold both shares (A+B) for?

96 + 96 = 192

Bought both shares for?

A: 96 / (6/5) = 16 * 5 = 80

B: 96 / (4/5) = 24 * 5 = 120

A + B = 200

Profit: 192 - 200 = -8

Manager  Joined: 18 Mar 2014
Posts: 226
Location: India
Concentration: Operations, Strategy
GMAT 1: 670 Q48 V35 GPA: 3.19
WE: Information Technology (Computer Software)
Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

1
Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

Kudos for a correct solution.

for 2 products ,Whenever selling price is same and there is x% profit on one and x% loss on other then there is loss on whole transaction.
Here ,
for first prodcut
96 = 1.2x
x = 80
First Cost price = 80

For second product
96 = 0.8x
x = 120
second cost price=120

total cost price =120+80=200
total selling price = 96+96 =192
Hence , loss of 8\$
_________________
Press +1 Kudos if you find this Post helpful Intern  Joined: 11 Sep 2013
Posts: 21
GMAT 1: 620 Q49 V27 Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

1
For the share in profit,

1.2x=96
x=80

for the share in loss,

0.8y=96
y=120

Total C.P = x+y = 120+20=200

Total S.P = 96 *2 = 192

Loss = 200 - 192= \$8

Director  P
Joined: 21 May 2013
Posts: 635
Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

1
Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

Kudos for a correct solution.

Cost price of each share=x
Sale price of share A=0.8x
Therefore, 0.8x=96
x=120
Loss=\$24
Sale price of share B=1.2X=96
X=80
Profit=16
Net loss=\$8
Math Expert V
Joined: 02 Sep 2009
Posts: 58429
Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

Kudos for a correct solution.

VERITAS PREP OFFICIAL SOLUTION

Note that the question would have been straight forward had the COST price been the same, say \$100. A 20% profit would mean a gain of \$20 and a 20% loss would mean a loss of \$20. Overall, there would have been no profit no loss.

Here the two shares are sold at the same SALE price. One at a profit of 20% on cost price which must be lower than the sale price (to get a profit) and the other at a loss of 20% on cost price which must be higher than the sale price (to get a loss). 20% of a lower amount will be less in dollar terms and hence overall, there will be a loss.

The loss % = (20)^2/100 % = 4%.

But we need the amount of loss, not the percentage of loss.

Total Sale price of the two shares = 2*96 = \$192

Since there is a loss of 4%, the 96% of the total cost price must be the total sale price

(96/100)*Cost Price = Sale Price

Cost Price = \$200

Loss = \$200 – \$192 = \$8

_________________
Math Expert V
Joined: 02 Aug 2009
Posts: 8006
Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

total CP = 9600/120 + 9600/80 = 80 + 120=200
SP=96*2=192
loss= Rs 8/-
C
_________________
CEO  D
Status: GMATINSIGHT Tutor
Joined: 08 Jul 2010
Posts: 2978
Location: India
GMAT: INSIGHT
Schools: Darden '21
WE: Education (Education)
John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

For EQUAL SELLING PRICE and EQUAL %age PROFIT AND LOSS ON ARTICLES the resultant loss or profit is calculated as follows

The situations always lead to loss

Loss% = (%age Profit or loss / 10)^2 = (20/10)^2 = 4% loss

Total Selling Price = 96*2 = \$192
Total Cost Price = 192/(0.96) = \$200

Loss = 200-192 = \$8

ALTERNATIVE

Cost price of first share = 96 / 1.2
Cost price of first share = 96 / 0.8

Total Cost price of both shares = (96 / 1.2 )+(96 / 0.8) = \$200

Total Loss = 200-192 = \$8

_________________
Prosper!!!
GMATinsight
Bhoopendra Singh and Dr.Sushma Jha
e-mail: info@GMATinsight.com I Call us : +91-9999687183 / 9891333772
Online One-on-One Skype based classes and Classroom Coaching in South and West Delhi
http://www.GMATinsight.com/testimonials.html

ACCESS FREE GMAT TESTS HERE:22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION

Originally posted by GMATinsight on 04 Nov 2015, 03:26.
Last edited by GMATinsight on 08 Oct 2018, 00:36, edited 1 time in total.
Target Test Prep Representative G
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2815
Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

For the one share earning a 20% profit, we can set up the following equation in which c = cost:

Profit = 0.2c

96 - c = 0.2c

96 = 1.2c

80 = c

Thus, John made 96 - 80 = 16 dollars on the sale.

For the share with a 20% loss, we can set up the following equation in which c = cost:

Profit = -0.2c

96 - c = -0.2c

96 = 0.8c

120 = c

Thus, John lost 120 - 96 = 24 dollars on the sale.

So, overall he lost 8 dollars.

_________________

Jeffrey Miller

Head of GMAT Instruction

Jeff@TargetTestPrep.com

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

If you find one of my posts helpful, please take a moment to click on the "Kudos" button.

CEO  D
Status: GMATINSIGHT Tutor
Joined: 08 Jul 2010
Posts: 2978
Location: India
GMAT: INSIGHT
Schools: Darden '21
WE: Education (Education)
Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

Kudos for a correct solution.

Harikamini

Since the loss incurred is 4% therefore we can deduce that revenue is only 96% of the cost

i.e. (96/100)*Total Cost = 192

i.e. Total Cost = 192/0/96 = 200

I hope this clears your doubt.
_________________
Prosper!!!
GMATinsight
Bhoopendra Singh and Dr.Sushma Jha
e-mail: info@GMATinsight.com I Call us : +91-9999687183 / 9891333772
Online One-on-One Skype based classes and Classroom Coaching in South and West Delhi
http://www.GMATinsight.com/testimonials.html

ACCESS FREE GMAT TESTS HERE:22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION
Intern  B
Joined: 02 Apr 2015
Posts: 39
Location: Singapore
GMAT 1: 550 Q42 V24 GMAT 2: 690 Q47 V37 GPA: 3.66
WE: Social Work (Non-Profit and Government)
Re: John bought 2 shares and sold them for \$96 each. If he had a profit of  [#permalink]

Show Tags

chetan2u wrote:
Bunuel wrote:
John bought 2 shares and sold them for \$96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of \$10
(B) a profit of \$8
(C) a loss of \$8
(D) a loss of \$10
(E) neither a profit nor a loss

total CP = 9600/120 + 9600/80 = 80 + 120=200
SP=96*2=192
loss= Rs 8/-
C

Hi Chetan,
Your approach is short and sweet and I like it.
Can you solve this problem, just by using conceptual approach? (without using the math I mean)
If it is possible, can you give a try? Re: John bought 2 shares and sold them for \$96 each. If he had a profit of   [#permalink] 17 May 2019, 09:00
Display posts from previous: Sort by

John bought 2 shares and sold them for \$96 each. If he had a profit of

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne  