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cismith · 07-02-2002, 08:35 PM

A person sells two houses for 30,000 each. One was sold for 20% less than what they paid for it, one was 20% more than what they paid for it. What was the net gain or loss if any?

They bought houses for 25,000 and 37,500 is what I came up with.

I got 2500 dollar gain, but the answer is 2500 loss, not sure why. Thanks!!

**Erin** · 07-03-2002, 12:02 AM

Umm... You must've flipped the answers around in your head in all your excitement to answer the problem!!

They bought the houses for how much???

They sold the houses for how much??

Erin

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cismith · 07-03-2002, 03:08 PM

The houses sold for 30,000 each. One was sold for 20% less than what it was purchase for and one was 20% more than what it was purchased for. What is the net gain or loss if any?

I got 25000 for the price of the house that sold for 20% gain and 37,500 for house that sold for a 20% loss. The net would then be 2500 gain right?

The answer was $2500 loss...

**Erin** · 07-04-2002, 09:05 PM

Okay, let's try this again (the funny thing is that you've done all the hard work; you're just getting caught up in another important part of test-taking, i.e, making sure you're interpreting the question correctly!!!)

Please answer the following questions. And please don't skip to the answer, okay???

1. How much did they pay for the houses?
2. How much did they get when they sold their houses?
3. How much is the profit or loss?

Erin

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ysnath · 07-06-2002, 06:14 AM

I don't know why this much of discussion is going on for a simple problem.

The answer is "A loss of 2500 dollars".

We see it step by step:

1. A person sells two houses for 30,000 each.

--> So he has got 60,000 out of this transaction.

2. One was sold for 20% less than what they paid for it,
--> So..one was purchased at 37,500, as he got 20% less.

3. one was 20% more than what they paid for it.
--> So..one was purchased at 25,000 as he got 20%more when he sold it.

4. Total amount for which he bought/purchased two houses
--> 37,500(from step 2) + 25,000(from step 3) = 62,500(Total amount)

5. He sells houses for 60,000 that means a loss of 2,500(62,500(from step 4) - 60,000)

Final Answer: A loss of 2,500.

**Erin** · 07-07-2002, 06:09 PM

Quote:

I don't know why this much of discussion is going on for a simple problem.

Knowledge is not the only part of taking a test; so many other factors are also involved, including one's mental state (anxiety) and careless errors. These last two factors can influence one's score almost as much as one's knowledge can.

This poster has obviously done the hardest part (the math), but has fallen prey to the test-makers trap and has switched the answers around in her or his head.

I'm hoping that the poster can see this mistake by her- or himself; from what I've seen in students, having what GMAT has called on one of its SC's an "aha! experience" on one's own is more reward (in many ways) than having the explanation simply given to you.

And please remember that the difficulty of any question is always relative. What may be elementary for one could be far beyond the reach of another. I believe that learning occurs best for many people in a gentle, non-threatening atmosphere, and one way that I can promot this general atmosphere is to encourage people to post all their questions, no matter how trivial or difficult.

So there you have my teaching philosophy in a nutshell. Thanks for your contributions!

Erin

TestMagic help you before your test?

Please remember to post after your test.

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cismith · 07-11-2002, 08:39 PM

Thanks for the help!! Math has never been my strong area. I appreciate the help.

cismith · 07-11-2002, 08:40 PM

Thanks for the help!! Math has never been my strong area. I appreciate the help.

ysnath · 08-13-2002, 08:39 AM

quote:
--------------------------------------------------------------------------------

I don't know why this much of discussion is going on for a simple problem.

--------------------------------------------------------------------------------

Hello Erin,

I am sorry and take back my words. It just came in while I am typing.

Will take care of this next time.

Regards,
Surendra

monicajal · 11-15-2003, 11:55 PM

Just my 2 cents..

In this kind of problem, remember there is always loss.

There is a simple formula to calculate loss percentage.

Loss % = ((loss or gain %)/10)^2

Monica

07-03-2002, 12:02 AM	#2 (permalink)
Erin So many things to do... Forum Admin Join Date: Dec 2000 Location: USA Posts: 8,303	Umm... You must've flipped the answers around in your head in all your excitement to answer the problem!! They bought the houses for how much??? They sold the houses for how much?? Erin TestMagic help you before your test? Please remember to post after your test. Please? Please? _ _ _ _ SIG _ _ _ _ [Say 'hi'!] [Google Interviews Erin] [San Francisco Chronicle Interviews Erin]

07-04-2002, 09:05 PM	#4 (permalink)
Erin So many things to do... Forum Admin Join Date: Dec 2000 Location: USA Posts: 8,303	Okay, let's try this again (the funny thing is that you've done all the hard work; you're just getting caught up in another important part of test-taking, i.e, making sure you're interpreting the question correctly!!!) Please answer the following questions. And please don't skip to the answer, okay??? 1. How much did they pay for the houses? 2. How much did they get when they sold their houses? 3. How much is the profit or loss? Erin TestMagic help you before your test? Please remember to post after your test. Please? Please? _ _ _ _ SIG _ _ _ _ [Say 'hi'!] [Google Interviews Erin] [San Francisco Chronicle Interviews Erin]

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07-02-2002, 08:35 PM	#1 (permalink)
cismith Trying to make mom and pop proud Join Date: Jul 2002 Posts: 4	A person sells two houses for 30,000 each. One was sold for 20% less than what they paid for it, one was 20% more than what they paid for it. What was the net gain or loss if any? They bought houses for 25,000 and 37,500 is what I came up with. I got 2500 dollar gain, but the answer is 2500 loss, not sure why. Thanks!!

07-03-2002, 03:08 PM	#3 (permalink)
cismith Trying to make mom and pop proud Join Date: Jul 2002 Posts: 4	The houses sold for 30,000 each. One was sold for 20% less than what it was purchase for and one was 20% more than what it was purchased for. What is the net gain or loss if any? I got 25000 for the price of the house that sold for 20% gain and 37,500 for house that sold for a 20% loss. The net would then be 2500 gain right? The answer was $2500 loss...

07-06-2002, 06:14 AM	#5 (permalink)
ysnath Trying to make mom and pop proud Join Date: Jul 2002 Posts: 7	I don't know why this much of discussion is going on for a simple problem. The answer is "A loss of 2500 dollars". We see it step by step: 1. A person sells two houses for 30,000 each. --> So he has got 60,000 out of this transaction. 2. One was sold for 20% less than what they paid for it, --> So..one was purchased at 37,500, as he got 20% less. 3. one was 20% more than what they paid for it. --> So..one was purchased at 25,000 as he got 20%more when he sold it. 4. Total amount for which he bought/purchased two houses --> 37,500(from step 2) + 25,000(from step 3) = 62,500(Total amount) 5. He sells houses for 60,000 that means a loss of 2,500(62,500(from step 4) - 60,000) Final Answer: A loss of 2,500.

07-11-2002, 08:39 PM	#7 (permalink)
cismith Trying to make mom and pop proud Join Date: Jul 2002 Posts: 4	Thanks for the help!! Math has never been my strong area. I appreciate the help.

07-11-2002, 08:40 PM	#8 (permalink)
cismith Trying to make mom and pop proud Join Date: Jul 2002 Posts: 4	Thanks for the help!! Math has never been my strong area. I appreciate the help.

08-13-2002, 08:39 AM	#9 (permalink)
ysnath Trying to make mom and pop proud Join Date: Jul 2002 Posts: 7	quote: -------------------------------------------------------------------------------- I don't know why this much of discussion is going on for a simple problem. -------------------------------------------------------------------------------- Hello Erin, I am sorry and take back my words. It just came in while I am typing. Will take care of this next time. Regards, Surendra

11-15-2003, 11:55 PM	#10 (permalink)
monicajal Eager! Join Date: Oct 2003 Posts: 31	Just my 2 cents.. In this kind of problem, remember there is always loss. There is a simple formula to calculate loss percentage. Loss % = ((loss or gain %)/10)^2 Monica

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