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# Lisa bought a house for \$70,000 and paid closing costs equal to 2 perc

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Senior Manager
Joined: 13 Oct 2016
Posts: 283
GMAT 1: 600 Q44 V28
Lisa bought a house for \$70,000 and paid closing costs equal to 2 perc  [#permalink]

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Updated on: 21 May 2017, 02:40
1
00:00

Difficulty:

15% (low)

Question Stats:

81% (01:32) correct 19% (00:10) wrong based on 32 sessions

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Lisa bought a house for \$70,000 and paid closing costs equal to 2 percent of the purchase price. Later Lisa sold the house for \$82,000 and paid a broker's commission equal to 10 percent of the selling price. What was Lisa's profit from the two transactions?

A. \$2,160
B. \$2,400
C. \$3,600
D. \$3,800
E. \$12,000

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Originally posted by Kritesh on 11 May 2017, 10:30.
Last edited by Kritesh on 21 May 2017, 02:40, edited 1 time in total.
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Re: Lisa bought a house for \$70,000 and paid closing costs equal to 2 perc  [#permalink]

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11 May 2017, 11:00
1
Lisa's cost on the house is 70000 *1.02(since she is charged a 2% cost on the purchase price)
CP : 71400
The Selling Price is 82000, since she was charged a commission of 10% on this amount,
SP - Commission is 0.9*820000 or 73800

Profit : SP - CP
73800 - 71400 = 2400(Option B)
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Re: Lisa bought a house for \$70,000 and paid closing costs equal to 2 perc  [#permalink]

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11 May 2017, 11:14
1
Kritesh wrote:
Lisa bought a house for \$70,000 and paid closing costs equal to 2 percent of the purchase price. Later Lisa sold the house for \$82,000 and paid a broker's commission equal to 10 percent of the selling price. What was Lisa's profit from the two transactions?

A. \$2,160
B. \$2,400
C. \$3,600
D. \$3,800
E. \$12,000

Cost Price is 102% of \$ 70,000 = \$ 71,400
Selling Price ( Ex Brokerage ) is 90% of \$ 82,000 = \$ 73,800

So, Profit is \$ 2400

Thus, profit is B. \$2,400
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Re: Lisa bought a house for \$70,000 and paid closing costs equal to 2 perc  [#permalink]

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11 May 2017, 22:39
CP = 1.02 * 70000 = 71400
Brokerage = .10 * 82000 = 8200 [10 % of any number is = shift decimal point to left ]

Total CP = 79600
Profit = CP - SP = 82000 - 79600 = 2400 [ no need to calculate just see option which is giving 400]

Ans: B
Re: Lisa bought a house for \$70,000 and paid closing costs equal to 2 perc &nbs [#permalink] 11 May 2017, 22:39
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