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# Two persons A & B bought land for Rs 2 lac and Flat for Rs 2.2 Lac

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Intern
Joined: 19 Jun 2018
Posts: 7
Two persons A & B bought land for Rs 2 lac and Flat for Rs 2.2 Lac  [#permalink]

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28 Jun 2018, 00:18
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50% (04:10) correct 50% (01:39) wrong based on 4 sessions

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Two persons A & B bought land for Rs 2 lac and Flat for Rs 2.2 Lac respectively, The price of the flat rises by 10% and that of land rises by 20% every year. If they exchange their assets after 2 years find the % profit of the gainer.
A- 8.19% B- 4.34% C- 12% D-19%
e-GMAT Representative
Joined: 04 Jan 2015
Posts: 2014
Re: Two persons A & B bought land for Rs 2 lac and Flat for Rs 2.2 Lac  [#permalink]

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28 Jun 2018, 00:38
1

Solution

Given:
• Two persons A & B bought land for Rs 2 lac and Flat for Rs 2.2 Lac respectively
• The price of the flat rises by 10% every year
• The price of land rises by 20% every year
• A and B exchange their assets after 2 years

To find:
• The profit percentage of the gainer

Approach and Working:
Initially the price of the land was 200,000 and it increased by 20% every year
• Therefore, price of land after 2 years = 200000 * 1.2 * 1.2 = 288000

Initially the price of the flat was 220000 and it increased by 10% every year
• Therefore, price of flat after 2 years = 220000 * 1.1 * 1.1 = 266200

Therefore, the amount of profit made by the gainer = 288000 – 266200 = 21800

As the assets were exchanged,
• The profit percentage = $$\frac{21800}{266200} * 100$$ = 8.189%

Hence, the correct answer is option A.

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Re: Two persons A & B bought land for Rs 2 lac and Flat for Rs 2.2 Lac &nbs [#permalink] 28 Jun 2018, 00:38
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# Two persons A & B bought land for Rs 2 lac and Flat for Rs 2.2 Lac

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