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Ms. Taylor purchased stock for $1,500 and sold 2/3 of it after its

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Ms. Taylor purchased stock for $1,500 and sold 2/3 of it after its [#permalink]

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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
[Reveal] Spoiler: OA

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New post 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

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New post 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.


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Re: Ms. Taylor purchased stock for $1,500 and sold 2/3 of it after its [#permalink]

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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
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New post 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.
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Re: Ms. Taylor purchased stock for $1,500 and sold 2/3 of it after its   [#permalink] 23 Oct 2017, 07:25
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