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

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

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New post Updated on: 21 May 2017, 03:40
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Question Stats:

90% (00:54) correct 10% (00:00) wrong based on 29 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, 11:30.
Last edited by Kritesh on 21 May 2017, 03:40, 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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New post 11 May 2017, 12:00
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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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New post 11 May 2017, 12:14
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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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New post 11 May 2017, 23:39
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   [#permalink] 11 May 2017, 23:39
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Lisa bought a house for $70,000 and paid closing costs equal to 2 perc

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