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16 Oct 2017, 10:10
00:00

Difficulty:

15% (low)

Question Stats:

82% (01:11) correct 18% (01:51) wrong based on 73 sessions

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Ms. Taylor purchased stock for $1,500 and sold 2/3 of it after its value doubled. She sold the remaining stock at 5 times its purchase price. What was her total profit on the stock? (A)$1,500
(B) $2,000 (C)$2,500
(D) $3,000 (E)$4,500

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Intern
Joined: 05 Oct 2017
Posts: 13
GMAT 1: 650 Q48 V32
WE: Consulting (Consulting)
Re: Ms. Taylor purchased stock for $1,500 and sold 2/3 of it after its [#permalink] ### Show Tags 16 Oct 2017, 13:48 Bunuel wrote: Ms. Taylor purchased stock for$1,500 and sold 2/3 of it after its value doubled. She sold the remaining stock at 5 times its purchase price. What was her total profit on the stock?

(A) $1,500 (B)$2,000
(C) $2,500 (D)$3,000
(E) $4,500 She sold ... ... 1000 (2/3 of her stock) for 2000 -> 1000 profit ... 500 (1/3 of her stock) for 2500 -> 2000 profit gives a total profit of 3000 - Answer D Senior Manager Joined: 07 Jul 2012 Posts: 356 Location: India Concentration: Finance, Accounting GPA: 3.5 Re: Ms. Taylor purchased stock for$1,500 and sold 2/3 of it after its  [#permalink]

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16 Oct 2017, 18:37
$$\frac{2}{3}$$ of the stock= $$\frac{2}{3}$$*1500= $1000$1000 stock sold for $1500 profit= 1500-1000= 500 Remaining$500 stock sold at 5 times its purchase price= 500*5= 2500
profit= 2500-500= 2000

Total profit= 2000+500= $2500 Answer: C. Kudos please if you like my explanation! _________________ Kindly hit kudos if my post helps! Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 3186 Location: United States (CA) Re: Ms. Taylor purchased stock for$1,500 and sold 2/3 of it after its  [#permalink]

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19 Oct 2017, 10:24
1
1
Bunuel wrote:
Ms. Taylor purchased stock for $1,500 and sold 2/3 of it after its value doubled. She sold the remaining stock at 5 times its purchase price. What was her total profit on the stock? (A)$1,500
(B) $2,000 (C)$2,500
(D) $3,000 (E)$4,500

After the stock reached $3,000, 2/3 was sold for 2/3 x 3,000 =$2,000.

Then ⅓ was sold when the stock hit $7,500, so she made 1/3 x 7,500 =$2,500 on that sale.

Thus, the total profit was (2,000 + 2,500) - 1,500 = $3,000. Answer: D _________________ Scott Woodbury-Stewart Founder and CEO GMAT Quant Self-Study Course 500+ lessons 3000+ practice problems 800+ HD solutions Manager Joined: 09 Aug 2017 Posts: 62 Location: United States Concentration: Technology GMAT 1: 640 Q44 V33 GMAT 2: 630 Q47 V29 WE: Research (Investment Banking) Re: Ms. Taylor purchased stock for$1,500 and sold 2/3 of it after its  [#permalink]

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23 Oct 2017, 07:25
I got D. I am doing these to work on the actual mechanics of problem solving, as opposed to increasing my knowledge base. I'd guess I know 80% to 90% of the questions, but I always make stupid errors, meaning I get only 65% to 75% of the questions on a GMAT Club practice test.

-@t=0, Investment is $1,500. I assume the price of each shares was$1 so 1,500 shares total.
-@t=1, $1 shares doubles to$2, sell 2/3*(1,500) of the shares @ $2 =$2,000 in revenue.
-@t=2, $1 share is now$5 per share, sell the remaining third. (1/3*1,500)*5=$2,500 in revenue. -Sum 2,500+2,000= 4,500 -4,500-1,500 is$3,000 net gain which is D.
_________________

I'd love to hear any feedback or ways to improve my problem solving. I make a lot of silly mistakes. If you've had luck improving on stupid mistakes, I'd love to hear how you did it.

Also, I appreciate any kudos.

Re: Ms. Taylor purchased stock for $1,500 and sold 2/3 of it after its &nbs [#permalink] 23 Oct 2017, 07:25 Display posts from previous: Sort by # Ms. Taylor purchased stock for$1,500 and sold 2/3 of it after its

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