John sold 100 shares of stock for $96 per share. For half

Question

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

A. No loss or gain
B. Gain of $400
C. Loss of $400
D. Gain of $800
E. Loss of $800

Bunuel · Accepted Answer

Strange wording. Anyway:

Cost of the profitable stock: x=96/1.2=80, so profit from it 96-80=16. Total profit 50*16=800
Cost of the non-profitable stock: y=96/0.8=120, so loss from it 96-120=-24. Total loss 50*(-24)=-1200

Total loss: 800+(-1200)=-400.

Answer: C.

cipher · Answer

50 shares for 20 % loss and 50 share for 20 % profit.

For profit - > 96 = 120 % of x hence x = 80 , total profit = 50 x (96-80) = 50 x 16
For Loss - > 96 = 80 % of y hence y = 120, total loss = 50 x (120-96) = 50 x 24

Net loss = 50 x24 - 50 x 16 = 50 (8) = 400

answer should be c

LM · Answer

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

MBAhereIcome · Answer

20% profit and 20% loss =  \frac{6}{5}*\frac{4}{5} = \frac{24}{25}  OR 4% loss

\frac{24}{25}x=9600  ....

total loss   =  9600*\frac{25}{24x}*\frac{4}{100} = 400

ans: 400

enigma123 · Answer

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 --------------------  = 20 % profit

20% profit = 4800 - 50x

After this I struggle. can you please help?

Bunuel · Answer

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 non-profitable stock was 96/0.8 = $120. Thus the profit was 50*(96-80) = $800 and the loss was 50*(120-96) = $1,200, which give s the overall loss of $400.

Hope it's clear.

sanjoo · Answer

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 loss-800 profit=net loss of 400.

PiyushK · Answer

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

Bluefalkon · Answer

50 shares for 20 % loss and 50 share for 20 % profit.

For profit - > 96 = 120 % of x hence x = 80 , total profit = 50 x (96-80) = 50 x 16
For Loss - > 96 = 80 % of y hence y = 120, total loss = 50 x (120-96) = 50 x 24

Net loss = 50 x24 - 50 x 16 = 50 (8) = 400

OptimusPrepJanielle · Answer

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

KarishmaB · Answer

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: https://anaprep.com/arithmetic-profit-o ... e-formula/ 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)

letlovebethejudge · Answer

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)/(100^2-x^2)
where x = common profit/loss %
s = Selling price

Applying the formula you will get Loss = 2*20*20*4800/(120*80) = 400

Meenakshi13 · Answer

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
+20-20+20(-20)/100=4%loss

letlovebethejudge · Answer

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/(100^2-x^2)

mvictor · Answer

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$

law258 · Answer

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:

x-0.20x=96
0.80x=96
x=120

Orig: 50x$120/each=$6000
New: 50x$96/each = $4800
-------------------------
$1200 loss

Net loss/profit = 800-1200 = 400 loss

C.

JeffTargetTestPrep · Answer

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

BrentGMATPrepNow · Answer

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 =  $80 
So, 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 =  $120 
So, 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

Abhishek009 · Answer

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)

John sold 100 shares of stock for $96 per share. For half

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John sold 100 shares of stock for $96 per share. For half

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