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John sold 100 shares of stock for $96 per share. For half [#permalink]
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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? [#permalink]
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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? [#permalink]
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31 Jan 2010, 20:16
ayeshan wrote: answer should be C ayeshan  you look like a spammer to me who is in a rush to grab gmatclub test . Bunuel/bb  please check his profile
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Re: What's the fastest way to asnwer this problem? [#permalink]
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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? [#permalink]
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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? [#permalink]
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14 Dec 2013, 14:14
Bunuel  apologies. But, I am struggling on this question from Veritas Arithmetic guide. See, Profit = S.P  C.P and after taking C.P as x for 1 item, I am not getting it right. Can you please explain?
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Re: What's the fastest way to asnwer this problem? [#permalink]
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Re: What's the fastest way to asnwer this problem? [#permalink]
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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: John sold 100 shares of stock for $96 per share. For half [#permalink]
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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 [#permalink]
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14 Sep 2014, 08:56
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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 [#permalink]
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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 [#permalink]
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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 [#permalink]
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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 [#permalink]
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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 [#permalink]
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29 Aug 2016, 09:17
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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 [#permalink]
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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 $96 per share. For half [#permalink]
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16 Oct 2016, 14:32
1.2x = 96$ 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 [#permalink]
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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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