NEW HERE? LEARN MORE
closeclose
Last visit was: 25 Apr 2024, 14:56 It is currently 25 Apr 2024, 14:56
Decision Tracker
My Rewards
New posts
New comers' posts

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

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

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 92915
Own Kudos [?]: 619016 [1]
Given Kudos: 81595
Send PM
CAT Tests Forum Quiz Mode
Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post   11 Jun 2019, 01:22
1
Bookmarks
Expert Reply
00:00
A
B
C
D
E

Difficulty:

5% (low)

Question Stats:

92% (01:46) correct 8% (02:19) wrong based on 186 sessions
Hide Show timer Statistics
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
ShowHide Answer
Official Answer
B
User avatar
G
GmatPrime
Tutor
Joined: 29 Nov 2018
Posts: 113
Own Kudos [?]: 193 [2]
Given Kudos: 76
GMAT 1: 750 Q49 V44
Send PM
Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post   11 Jun 2019, 01:30
1
Kudos
1
Bookmarks
Expert Reply
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
User avatar
L
CareerGeek
VP
VP
Joined: 20 Jul 2017
Posts: 1300
Own Kudos [?]: 3450 [1]
Given Kudos: 162
Location: India
Concentration: Entrepreneurship, Marketing
GMAT 1: 690 Q51 V30
WE:Education (Education)
Send PM
Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post   11 Jun 2019, 05:30
1
Kudos
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

Pls Hit kudos if you like the solution
User avatar
L
ScottTargetTestPrep
Target Test Prep Representative
Joined: 14 Oct 2015
Status:Founder & CEO
Affiliations: Target Test Prep
Posts: 18761
Own Kudos [?]: 22052 [1]
Given Kudos: 283
Location: United States (CA)
Send PM
Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post   14 Jun 2019, 09:39
1
Kudos
Expert Reply
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
User avatar
L
Archit3110
GMAT Club Legend
GMAT Club Legend
Joined: 18 Aug 2017
Status:You learn more from failure than from success.
Posts: 8019
Own Kudos [?]: 4097 [0]
Given Kudos: 242
Location: India
Concentration: Sustainability, Marketing
GMAT Focus 1:
545 Q79 V79 DI73
GPA: 4
WE:Marketing (Energy and Utilities)
Send PM
GMAT ToolKit User CAT Tests
Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post   11 Jun 2019, 08:18
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
User avatar
L
Abhishek009
Board of Directors
Joined: 11 Jun 2011
Status:QA & VA Forum Moderator
Posts: 6072
Own Kudos [?]: 4689 [0]
Given Kudos: 463
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
Send PM
GMAT ToolKit User
Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink] New post   18 Jan 2023, 08:20
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)
GMAT Club Bot
gmatclubot
Re: Lisa bought a house for $70,000 and paid closing costs equal to 2 perc [#permalink]
18 Jan 2023, 08:20
Moderators:
Bunuel
Math Expert
92915 posts
yashikaaggarwal
Senior Moderator - Masters Forum
3137 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions