A realtor sells homes for 20% above the initial acquisition cost. If a

Question

A realtor sells homes for 20% above the initial acquisition cost

Current market price of the house = $360,000

Original price of the house = $\frac{120}{100} * x = 360000$

=> x = $360000 * \frac{10}{12}$

=> x = 300000

If a house does not sell within six months, the realtor will then mark the price down to only 5% above acquisition cost.

Reduced price of the house in dollars if the house does not sell within six months

=> $300000 * \frac{105}{100}$

=> 315000

Hence option C

A. 302,400

B. 306,000

C. 315,000

D. 318,000

E. 342,000

chetan2u · Answer

Just remember that the % would always be on Cost Price unless specified otherwise

So 20% over initial price =120%=360,000.....
So 100%=360000*100/120=300,000

Now add 5%, which is 300000+300000*5/100=300,000+15,000=315,000

C

Nikhil · Answer

A realtor sells homes for 20% above the initial acquisition cost

Current market price of the house = $360,000

Original price of the house =  \frac{120}{100} * x = 360000

=> x =  360000 * \frac{10}{12}

=> x = 300000

If a house does not sell within six months, the realtor will then mark the price down to only 5% above acquisition cost.

Reduced price of the house in dollars if the house does not sell within six months

=>  300000 * \frac{105}{100}

=> 315000

Hence option C

KSBGC · Answer

Note: 360000 is basically 120% of initial cost. we are looking for 105% of the initial cost. It is stated in the question that if a house doesn't sell within 6 months , the retailer needs to reduce the the price to 105%.

Question: If a house doesn't sell within 6 months , what will be the reduced price ? Reduced price will be 105 % of the initial price.

(360000/120)*105

= 315000

The best answer is C.

EgmatQuantExpert · Answer

Solution

Given:  
 • A realtor sells homes for 20% above the initial acquisition cost
• If a house does not sell within six months, the realtor will then mark the price down to only 5% above acquisition cost
• A house has just entered the market and the realtor has priced it at $360,000

To find:  
 • The reduced price of the house, in dollars, if the house does not sell within six months

Approach and Working:   
As the initial price is 20% above the initial acquisition cost,
 • The acquisition cost =  \frac{360000}{1.2}  = 300000

If the house is not sold in 6 months, then the price becomes 5% higher than the acquisition cost
 • Therefore, the reduces price after 6 months = 300000 * 1.05 = 315000

Hence, the correct answer is option C.

Answer: C

A realtor sells homes for 20% above the initial acquisition cost. If a

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

A realtor sells homes for 20% above the initial acquisition cost. If a

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards