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• ### $450 Tuition Credit & Official CAT Packs FREE November 15, 2018 November 15, 2018 10:00 PM MST 11:00 PM MST EMPOWERgmat is giving away the complete Official GMAT Exam Pack collection worth$100 with the 3 Month Pack ($299) • ### Free GMAT Strategy Webinar November 17, 2018 November 17, 2018 07:00 AM PST 09:00 AM PST Nov. 17, 7 AM PST. Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT. # M19-13  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: ### Hide Tags Math Expert Joined: 02 Sep 2009 Posts: 50585 M19-13 [#permalink] ### Show Tags 16 Sep 2014, 00:05 5 11 00:00 Difficulty: 65% (hard) Question Stats: 57% (00:51) correct 43% (01:14) wrong based on 222 sessions ### HideShow timer Statistics 1000 dollars were converted into pounds and then the pounds were converted back into dollars at the same exchange rate of $$x$$ pounds per dollar. If a commission of $$y\%$$ is levied on any exchange operation, what dollar amount was left after the exchanges? (1) $$x = 0.6$$ (2) $$y = 5$$ _________________ Math Expert Joined: 02 Sep 2009 Posts: 50585 Re M19-13 [#permalink] ### Show Tags 16 Sep 2014, 00:05 1 4 Official Solution: Whatever the value of $$x$$, the first exchange turned 1000 dollars into the equivalent of $$1000(1 - \frac{y}{100})$$ dollars. This amount, in turn, became $$1000(1 - \frac{y}{100})^2$$ dollars after the second exchange. To answer the question we need to know the value of $$y$$. Statement (1) by itself is insufficient. S1 tells us the value of$$x$$, not $$y$$. Statement (2) by itself is sufficient. S2 tells us the value of $$y$$. Answer: B _________________ Intern Joined: 04 Aug 2014 Posts: 29 GMAT 1: 620 Q44 V31 GMAT 2: 620 Q47 V28 GPA: 3.2 Re: M19-13 [#permalink] ### Show Tags 18 Dec 2015, 01:11 1 HI BRUNEL CAN U PLS ELABORATE THE LOGIC BEHIND 1000(1−y/100) dollars Manager Joined: 08 Jul 2015 Posts: 56 GPA: 3.8 WE: Project Management (Energy and Utilities) Re: M19-13 [#permalink] ### Show Tags 26 May 2016, 01:32 sidagar wrote: HI BRUNEL CAN U PLS ELABORATE THE LOGIC BEHIND 1000(1−y/100) dollars sidagar: the question said y% means y% = y/100. Also, final value you receive after exchange = begin - commission (on begin value) = 1000 - 1000*y% = 1000 (1-y%) = 1000(1-y/100). Cheers. _________________ [4.33] In the end, what would you gain from everlasting remembrance? Absolutely nothing. So what is left worth living for? This alone: justice in thought, goodness in action, speech that cannot deceive, and a disposition glad of whatever comes, welcoming it as necessary, as familiar, as flowing from the same source and fountain as yourself. (Marcus Aurelius) Senior Manager Joined: 31 Mar 2016 Posts: 386 Location: India Concentration: Operations, Finance GMAT 1: 670 Q48 V34 GPA: 3.8 WE: Operations (Commercial Banking) Re M19-13 [#permalink] ### Show Tags 20 Aug 2016, 03:56 1 I think this is a high-quality question and I agree with explanation. Intern Joined: 03 Jul 2016 Posts: 3 Re M19-13 [#permalink] ### Show Tags 10 Oct 2016, 06:42 I think this is a high-quality question and the explanation isn't clear enough, please elaborate. I agree with the impact of Y on exchange but what about x, once the exchange operation is done what about the loss through exchange rate, I believe that should also be converted. Intern Joined: 06 May 2015 Posts: 46 Location: India Schools: Darden '21 GPA: 4 Re: M19-13 [#permalink] ### Show Tags 04 Nov 2016, 01:37 1 1 chetanyasahu1 wrote: I think this is a high-quality question and the explanation isn't clear enough, please elaborate. I agree with the impact of Y on exchange but what about x, once the exchange operation is done what about the loss through exchange rate, I believe that should also be converted. CASE #1 Exchange Rate X = 0.6 (£0.6 =$1)
• $1000 --> £600 • (-) Commission 5%  £570 • £570-->$950
• (-) Commisson 5%  $902.5 CASE #2 Exchange Rate X = 2 (£2 =$1)
• $1000 -->$2000
• (-) Commission 5% --> £1900
• £1900 --> $950 • (-) Commisson 5% -->$902.5

SO, exchange rate does not matter.
Intern
Joined: 09 Aug 2017
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09 Aug 2017, 07:46
neither of these two answers are logic and do not answer the question. The question was how much dollars you have after two exchanges. These two answers are more like conditions of task.
Senior Manager
Joined: 08 Jun 2015
Posts: 435
Location: India
GMAT 1: 640 Q48 V29
GMAT 2: 700 Q48 V38
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09 Aug 2017, 08:47
+1 for option B. We need value of "y". Only option B gives us the amount of dollars to be paid. The answer is B.
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Manager
Joined: 09 Nov 2016
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10 Aug 2017, 04:18
sidagar wrote:
HI BRUNEL

CAN U PLS ELABORATE THE LOGIC BEHIND

1000(1−y/100) dollars

Hi,
Its simple math..
1000-y% of 1000 = 1000 - $$\frac{y}{100}*1000$$ is what would remain for conversion to pounds.

Intern
Joined: 05 Jul 2017
Posts: 27

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17 Aug 2017, 21:52
Bunuel wrote:
Official Solution:

Whatever the value of $$x$$, the first exchange turned 1000 dollars into the equivalent of $$1000(1 - \frac{y}{100})$$ dollars. This amount, in turn, became $$1000(1 - \frac{y}{100})^2$$ dollars after the second exchange. To answer the question we need to know the value of $$y$$.
Statement (1) by itself is insufficient. S1 tells us the value of$$x$$, not $$y$$.

Statement (2) by itself is sufficient. S2 tells us the value of $$y$$.

exchange rate X must be equal to a fraction i.e. [pound][/dollar] or [p][/d] .
Now after first conversion the amount would be = $$1000(1 - \frac{y}{100})$$ . [p][/d]

Now when we convert again the pound to dollar the fraction would be inverted to [d[/p]
and the new dollar value that would be remaining = $$1000(1 - \frac{y}{100})^2$$ . [p][/d] . [d[/p] = $$1000(1 - \frac{y}{100})^2$$

=> the Answer is B, as we just need to know the value of Y .
Manager
Joined: 10 Sep 2015
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Concentration: Finance, Human Resources
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08 Nov 2017, 10:03
i am still confused on y% of what.
When converting from dollar to pound then y% of dollar and when from pound to dollar then y% of pound.

Please confirm if my understanding is correct
Intern
Joined: 26 Nov 2017
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02 May 2018, 04:03
question doesn't says that commission is charged on dollars or pound. confused.
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12 May 2018, 13:44
I think this is a high-quality question and the explanation isn't clear enough, please elaborate.
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Intern
Joined: 20 Apr 2018
Posts: 36
Location: United States (DC)
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09 Jun 2018, 05:56
I just used logic here. For example, say we have $1000 dollars and the exchange rate of dollars to pounds is 1/3, then$1000 dollars gives us 3000 pounds. The exchange rate remains the same, thus 3000 pounds at 1/3 is still \$1000 dollars. Thus, we only need to find Y to get the actual amount.

Please correct me if I am wrong.
Intern
Joined: 29 Jun 2017
Posts: 10

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06 Sep 2018, 06:05
Hi,

I understand that the commission(y) needs to be deducted from the amount so converted. But the question asks us to find the amount left after deducting the commission. In that case, isn't the value of x i.e the exchange rate important? Only after knowing the value of x will we be able to find the remaining amount.

Manager
Joined: 09 Jun 2014
Posts: 189
Location: India
Concentration: General Management, Operations
Schools: Tuck '19

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05 Nov 2018, 07:30
Megha1119 wrote:
Hi,

I understand that the commission(y) needs to be deducted from the amount so converted. But the question asks us to find the amount left after deducting the commission. In that case, isn't the value of x i.e the exchange rate important? Only after knowing the value of x will we be able to find the remaining amount.

No.I think a unit is converted into from pound to dollar and then from dollar to pound..doesnt matter how many dollar is equal to how many pounds..because the value will change and the unit will get back to original value..
Re: M19-13 &nbs [#permalink] 05 Nov 2018, 07:30
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# M19-13

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