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Learn how Kamakshi achieved a GMAT 675 with an impressive 96th %ile in Data Insights. Discover the unique methods and exam strategies that helped her excel in DI along with other sections for a balanced and high score.
Updated on: 09 Jun 2016, 12:13
Originally posted by sabrina3509 on 09 Jun 2016, 12:02.
Last edited by Kurtosis on 09 Jun 2016, 12:13, edited 1 time in total.
Last edited by Kurtosis on 09 Jun 2016, 12:13, edited 1 time in total.
Edited the topic name. Topic name must contain few words from the question.
Kudos
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
80% (01:41) correct
20%
(01:56)
wrong
based on 134
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A stock trader originally bought 300 shares of stock from a company at a total cost of m dollars. If each share was sold at 50% above the original cost per share of stock, then interns of m for how many dollars was each share sold?
a) 2m/300
b) m/300
c) m/200
d) m/300 + 50
e) 350/m
a) 2m/300
b) m/300
c) m/200
d) m/300 + 50
e) 350/m
21 Dec 2017, 19:16
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Small leverage words here make a big difference. First, notice that the "total" cost of 300 stocks is equal to \(m\). Thus, the cost per stock would be \(\frac{m}{300}\). This fraction matches answer choice (B), and highlights a classic trap of the GMAT: answer choices often include the "right answer to the wrong question." The target of this question is not the original cost per stock, but instead the price at which each stock was sold, after an increase.
The question indicates that each share was sold at 50% above the original cost. This is a percentage increase, adding half of the original value to the value. Thus, if the original cost per stock were \((\frac{m}{300})\), the value of the stock after the increase would be \((\frac{m}{300})(1+\frac{1}{2})\). Now, don't convert the fraction to decimal values here. Not only are "fractions your friends", but the answer choices clearly keep the math in fractional form.
Now, we need to just simplify the math, looking for common factors in the top and bottom of the equation to make the math even easier:
\((\frac{m}{300})(1+\frac{1}{2})=(\frac{m}{3*100})(\frac{3}{2})=\frac{m}{200}\)
The answer is (C).
The question indicates that each share was sold at 50% above the original cost. This is a percentage increase, adding half of the original value to the value. Thus, if the original cost per stock were \((\frac{m}{300})\), the value of the stock after the increase would be \((\frac{m}{300})(1+\frac{1}{2})\). Now, don't convert the fraction to decimal values here. Not only are "fractions your friends", but the answer choices clearly keep the math in fractional form.
Now, we need to just simplify the math, looking for common factors in the top and bottom of the equation to make the math even easier:
\((\frac{m}{300})(1+\frac{1}{2})=(\frac{m}{3*100})(\frac{3}{2})=\frac{m}{200}\)
The answer is (C).
General Discussion
09 Jun 2016, 12:09
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sabrina3509
Quote:
Let Cost of 300 shares be $ 3000
So, Cost of 1 shares be $ 10 =>m/300
Quote:
Selling price per share = (100+50)/100 * m/300
Or, Selling price per share = 3/2 * m/300 => m/200
Hence answer will be (C)
