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# The income of a broker remains unchanged though the rate of commission

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Intern
Joined: 16 Mar 2017
Posts: 9
Concentration: Finance, Accounting
GMAT 1: 610 Q47 V27
GPA: 3.71
WE: Accounting (Other)
The income of a broker remains unchanged though the rate of commission  [#permalink]

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15 Oct 2017, 07:14
00:00

Difficulty:

45% (medium)

Question Stats:

75% (00:31) correct 25% (03:39) wrong based on 8 sessions

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The income of a broker remains unchanged though the rate of commission is increased from 4% to 5%. The percentage of slump in business is:

A. 8%

B. 1%

C. 20%

d. 80%

E. 5%

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The income of a broker remains unchanged though the rate of commission  [#permalink]

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15 Oct 2017, 07:34
1
zahinsarwar wrote:
The income of a broker remains unchanged though the rate of commission is increased from 4% to 5%. The percentage of slump in business is:

A. 8%

B. 1%

C. 20%

d. 80%

E. 5%

Let $$S_1$$ be initial sales and $$S_2$$ be sales after increase in commission %. We need to find $$\frac{S_1-S_2}{S_1}$$

Given $$S_1*4$$%$$=S_2*5$$% $$=> \frac{S_2}{S_1}=\frac{4}{5}$$. subtract both sides of the equation from $$1$$ to get

Or, $$1-\frac{S_2}{S_1}=1-\frac{4}{5}$$

$$\frac{S_1-S_2}{S_1}=\frac{1}{5} => 20$$%

Option C
Intern
Joined: 11 Apr 2017
Posts: 38
Schools: Kelley '20
Re: The income of a broker remains unchanged though the rate of commission  [#permalink]

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15 Oct 2017, 07:48
2
Here,
let be the value of business 100
and, the percentage of slump of business is x
So, according to question,
100 * 4/100 = (100-x) * 5/100
4 = (100-x)/20
80 = 100 -x
100 -x = 80
- x = 80-100
-x = -20
x= 20
Math Expert
Joined: 02 Sep 2009
Posts: 53716
Re: The income of a broker remains unchanged though the rate of commission  [#permalink]

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15 Oct 2017, 08:50
zahinsarwar wrote:
The income of a broker remains unchanged though the rate of commission is increased from 4% to 5%. The percentage of slump in business is:

A. 8%

B. 1%

C. 20%

d. 80%

E. 5%

This is not a GMAT question. Please note that ONLY Questions from Reliable GMAT Sources are Allowed on the Forum! Check our rules here: rules-for-posting-please-read-this-before-posting-133935.html Thank you.

Topic is locked and archived.

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Re: The income of a broker remains unchanged though the rate of commission  [#permalink]

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31 Dec 2018, 06:34
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Re: The income of a broker remains unchanged though the rate of commission   [#permalink] 31 Dec 2018, 06:34
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# The income of a broker remains unchanged though the rate of commission

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