Lisa bought a house for $70,000 and paid closing costs equal to 2 perc

Question

Lisa bought a house for $70,000 and paid closing costs equal to 2 percent of the purchase price. Later Lisa sold the house for $82,000 and paid a broker's commission equal to 10 percent of the selling price. What was Lisa's profit from the two transactions?

A. $2,160
B. $2,400
C. $3,600
D. $3,800
E. $12,000

A. $2,160
B. $2,400
C. $3,600
D. $3,800
E. $12,000

GmatPrime · Answer

Closing cost= 2% of purchase price = $1400
Total cost = $71,400

Brokerage = 10% 0f selling price = $8200
Money left after paying brokerage = 82000-8200 = $73,800

Profit = 73,800 - 71,400 = $2400

Option B

CareerGeek · Answer

Closing costs = 2% of 70,000 = 2/100*70000 = 1400 $

Net CP = 71,400 $

Selling price = 82,000 $
Commission paid = 10% of 82,000 $ = 10/100*82000 = 8200 $

Net SP = 82,000 - 8,200 = 73,800 $

Profit = SP - CP = 73,800 - 71,400 = 2,400 $

IMO Option B

Pls Hit kudos if you like the solution

Archit3110 · Answer

for 70,000 she paid ; 2% closing ; 1400
and at time of sale 82,000 ; 10% ; 8200
net profit ; 82000-70000-8200-1400 ; 2400
IMO B

ScottTargetTestPrep · Answer

Lisa’s profit is the following:

0.9 x 82,000 - 70,000 x 1.02 = 73,800 - 71,400 = $2,400

Answer: B

Abhishek009 · Answer

82000*0.90-1.02*70000

= 73800 - 71400

= 2400 , Answer must be (B)

Lisa bought a house for $70,000 and paid closing costs equal to 2 perc

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Lisa bought a house for $70,000 and paid closing costs equal to 2 perc

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