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

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Bunuel
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Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post  11 Jun 2019, 00:22
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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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Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post  11 Jun 2019, 00:30
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Closing cost= 2% of purchase price = $1400
Total cost = $71,400

Brokerage = 10% 0f selling price = $8200
Money left after paying brokerage = 82000-8200 = $73,800

Profit = 73,800 - 71,400 = $2400

Option B
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Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post  11 Jun 2019, 04:30
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Bunuel 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


Closing costs = 2% of 70,000 = 2/100*70000 = 1400 $

Net CP = 71,400 $

Selling price = 82,000 $
Commission paid = 10% of 82,000 $ = 10/100*82000 = 8200 $

Net SP = 82,000 - 8,200 = 73,800 $

Profit = SP - CP = 73,800 - 71,400 = 2,400 $

IMO Option B

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Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post  11 Jun 2019, 07:18
Bunuel 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


for 70,000 she paid ; 2% closing ; 1400
and at time of sale 82,000 ; 10% ; 8200
net profit ; 82000-70000-8200-1400 ; 2400
IMO B
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Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post  14 Jun 2019, 08:39
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Bunuel 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


Lisa’s profit is the following:

0.9 x 82,000 - 70,000 x 1.02 = 73,800 - 71,400 = $2,400

Answer: B
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Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post  18 Jan 2023, 07:20
Bunuel 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

\(82000*0.90-1.02*70000\)

\(= 73800 - 71400\)

\(= 2400\), Answer must be (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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