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John sold 100 shares of stock for $96 per share. For half
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31 Jan 2010, 14:29
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John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock? A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800
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Re: What's the fastest way to asnwer this problem?
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31 Jan 2010, 14:49
GMATFIGHTER wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?
A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800 Strange wording. Anyway: Cost of the profitable stock: x=96/1.2=80, so profit from it 9680=16. Total profit 50*16=800 Cost of the nonprofitable stock: y=96/0.8=120, so loss from it 96120=24. Total loss 50*(24)=1200 Total loss: 800+(1200)=400. Answer: C.
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Re: What's the fastest way to asnwer this problem?
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31 Jan 2010, 14:53
GMATFIGHTER wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?
a) No loss or gain
b) Gain of $400
c) Loss of $400
d) Gain of $800
e) Loss of $800
Would you guys please show me a short cut to answer this problem? A much faster approach would be appreciated! Thanks! 50 shares for 20 % loss and 50 share for 20 % profit. For profit  > 96 = 120 % of x hence x = 80 , total profit = 50 x (9680) = 50 x 16 For Loss  > 96 = 80 % of y hence y = 120, total loss = 50 x (12096) = 50 x 24 Net loss = 50 x24  50 x 16 = 50 (8) = 400 answer should be c



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Re: What's the fastest way to asnwer this problem?
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31 Jan 2010, 23:48
GMATFIGHTER wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?
a) No loss or gain
b) Gain of $400
c) Loss of $400
d) Gain of $800
e) Loss of $800
Would you guys please show me a short cut to answer this problem? A much faster approach would be appreciated! Thanks! Total Selling Price = $9600 For 50 shares it is 20% profit and for other 50 it is 20% Loss. For 20% profit 6/5*cost = 9600 cost=$80 For 20% Loss 4/5*cost = 9600 cost= $120 Total cost = $80*50 + $120*50 = 10,000 Therefore Loss = 10,000  9600 = $400



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Re: What's the fastest way to asnwer this problem?
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28 Feb 2012, 04:27
20% profit and 20% loss = \(\frac{6}{5}*\frac{4}{5} = \frac{24}{25}\) OR 4% loss
\(\frac{24}{25}x=9600\) .... [where x is the cost]
total loss [4% of cost] = \(9600*\frac{25}{24x}*\frac{4}{100} = 400\)
ans: 400



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Re: What's the fastest way to asnwer this problem?
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22 Dec 2013, 15:29
Sure... S.P of 1 share = 96 S.P of 50 shares = 50 * 96 = 4800 C.P of 1 share = x C.P of 50 shares = 50x Profit = 4800  50x [S.P  C.P] = 20 % profit 20% profit = 4800  50x After this I struggle. can you please help?
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Re: What's the fastest way to asnwer this problem?
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22 Dec 2013, 23:55
enigma123 wrote: Sure...
S.P of 1 share = 96 S.P of 50 shares = 50 * 96 = 4800
C.P of 1 share = x C.P of 50 shares = 50x
Profit = 4800  50x [S.P  C.P] = 20 % profit
20% profit = 4800  50x
After this I struggle. can you please help? First of all, John sold ALL 100 shares of stock for $96 per share, not only 50 of them. Next, cost (CP) of the profitable stock was 96/1.2 = $80 and the cost of the nonprofitable stock was 96/0.8 = $120. Thus the profit was 50*(9680) = $800 and the loss was 50*(12096) = $1,200, which give s the overall loss of $400. Hope it's clear.
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Re: John sold 100 shares of stock for $96 per share. For half
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23 Dec 2013, 02:24
simple percetage question... 96=5/4 of x (its better to write in fraction rather in percentage, I have tried in both way, bt it tuk me longer time with decimals) x=80. profit is of 16 dollar per share. so 16*50=800. 4/5 of x=96 x=120 (this is the value on which he purchased 50 stocks) loss of 24 dollar per share....24*50=1200..... so 1200 loss800 profit=net loss of 400.
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John sold 100 shares of stock for $96 per share. For half
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14 Sep 2014, 08:56
One will always have loss in such case;
Direct formula:
Total loss amount = \(\frac{2 X P^2}{(100^2  P^2)\)
Total loss % = \(\frac{P^2}{100^2}\)
X = common sales price of two different items = in this case 96x50 P = % loss = % gain = in this case 20



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Re: John sold 100 shares of stock for $96 per share. For half
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13 Dec 2015, 04:03
50 shares for 20 % loss and 50 share for 20 % profit.
For profit  > 96 = 120 % of x hence x = 80 , total profit = 50 x (9680) = 50 x 16 For Loss  > 96 = 80 % of y hence y = 120, total loss = 50 x (12096) = 50 x 24
Net loss = 50 x24  50 x 16 = 50 (8) = 400



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Re: John sold 100 shares of stock for $96 per share. For half
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09 Jun 2016, 11:06
sabrina3509 wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half this represented a 20% loss. What was the net gain or net loss on this sale of stock?
a) No loss or gain b) gain of $400 c) Loss of $400 d) gain of $800 e) loss of $800
Could you show a simple step by step for solving and then also show the most efficient method for solving? 50 shares for $96 gave 20% profit. This means Cost of each share = $80. Net cost of 50 shares = $4000 50 shares for $96 gave 20% loss. This means cost of each share = $120 Net cost of 50 shares = $6000 Total net cost = 6000 + 4000 = $10000 Total net seeing price = 96*100 = 9600 Hence there is a loos of $400 Correct Option: C



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Re: John sold 100 shares of stock for $96 per share. For half
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09 Jun 2016, 21:46
GMATFIGHTER wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?
A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800 With the same selling price, if we have a profit of a% on one and a loss of a% on another, in all we always have a loss of (a^2/100)%. This is discussed in detail here: http://www.veritasprep.com/blog/2014/04 ... nanother/So here, we have a loss of (20^2/100)% = 4% Cost Price * 96/100 = Selling Price = 96 *100 Cost Price = 10,000 Amount of Loss = 4% of 10,000 = $400 Answer (C)
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Re: John sold 100 shares of stock for $96 per share. For half
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29 Aug 2016, 08:36
GMATFIGHTER wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?
A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800 Very tricky question, consider this question as A person sold the same product for 4800 and on one product he gained 20% and on another product he lost 20%. In such cases there will always be overall loss and never gain. So, you can use formula Loss = (2x^2s)/(100^2x^2) where x = common profit/loss % s = Selling price Applying the formula you will get Loss = 2*20*20*4800/(120*80) = 400
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Re: John sold 100 shares of stock for $96 per share. For half
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29 Aug 2016, 09:17
The direct formula in such cases is : a+b+ab/100 where a and b are profit and loss. so here a=+20 and b =20 +2020+20(20)/100=4%loss



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Re: John sold 100 shares of stock for $96 per share. For half
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29 Aug 2016, 10:41
Meenakshi13 wrote: The direct formula in such cases is : a+b+ab/100 where a and b are profit and loss. so here a=+20 and b =20 +2020+20(20)/100=4%loss Hi Meenakshi 13, Because a and b are equal in the scenario I explained your formula will eventually become x^2/100 which is the formula for OVERALL LOSS %. The question asks for amount so we will use 2x^2s/(100^2x^2)
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Re: John sold 100 shares of stock for $96 per share. For half
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16 Oct 2016, 14:32
1.2x = 96$ x=80 so he purchased 50 shares at the price of 80$/share
0.8y = 96$ y=120  so he purchased the other 50 at the price of 120
now 50*80 = 4000$ 50*120 = 100*60 = 6000$ total spent  10,000$ total received  9,600$ net loss  400$



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Re: John sold 100 shares of stock for $96 per share. For half
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06 Dec 2016, 19:42
50 shares:
x+0.20x=96 1.2x=96 x=80
Orig: 50x$80/each = $4000 New: 50x$96/each = $4800  $800 gain
50 shares:
x0.20x=96 0.80x=96 x=120
Orig: 50x$120/each=$6000 New: 50x$96/each = $4800  $1200 loss
Net loss/profit = 8001200 = 400 loss
C.



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Re: John sold 100 shares of stock for $96 per share. For half
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12 Feb 2018, 17:12
GMATFIGHTER wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?
A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800 For the 20% profit we have: Profit = 0.2c r  c = 0.2c r = 1.2c Since r = 96, we have: 96 = 1.2c 80 = c So the profit was 96  80 = 16 dollars per share for 50 shares of stocks. For the 20% loss we have: Profit = 0.2c r  c = 0.2c r = 0.8c Since r = 96, we have: 96 = 0.8c 120 = c So the loss was 120  96 = 24 dollars per share for the other 50 shares of stocks Thus, the total net loss is 24(50)  16(50) = (24  16)(50) = 8(50) = 400 dollars. Answer: C
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Re: John sold 100 shares of stock for $96 per share. For half
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14 Aug 2018, 07:28
GMATFIGHTER wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?
A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800 Let x be the ORIGINAL price of each share that sold for a 20% PROFIT So, 1.2x = price of each share that sold for a 20% profit In other words, 1.2x = $96 So, x = 96/1.2 = $80So, these shares ORIGINALLY cost $80 each Let y be the ORIGINAL price of each share that sold for a 20% LOSS So, 0.8x = price of each share that sold for a 20% loss In other words, 0.8x = $96 So, x = 96/0.8 = $120So, these shares ORIGINALLY cost $120 each Let's first determine how much money John spent to BUY the 100 shares 50 shares at $80 apiece cost $4000 50 shares at $120 apiece cost $6000 TOTAL cost to BUY = $4000 + $6000 = $10,000 Now determine how much money John RECEIVED when we SOLD the 100 shares Since he sold all 100 shares for $96 each, the TOTAL amount received = $9600 So, John SPENT $10,000 and he RECEIVED $9600 This represents a LOSS of $400 Answer: C Cheers, Brent
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Re: John sold 100 shares of stock for $96 per share. For half
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15 Aug 2018, 02:00
GMATFIGHTER wrote: John sold 100 shares of stock for $96 per share. For half his shares, this represented a 20% profit; for the other half, this represented a 20% loss. What was the net gain or net loss on this sale of stock?
A. No loss or gain B. Gain of $400 C. Loss of $400 D. Gain of $800 E. Loss of $800 CP of first 50 shares is 96/120*100 = 80 each CP of next 50 shares is 96/80*100 = 120 each Total CP of 100 Shares is 80*50 + 1200*50 = 10000 SP of 100 Shares is 9600 Net Loss is 400 , Answer must be (C)
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