GMAT_PREP_EXAM_6_PS
An investor purchased 100 shares of stock X at 6 1/8 dollars per share and sold them all a year later at 24 dollars per share. If the investor paid a 2 percent brokerage fee on both the total purchase price and the total selling price, which of the following is closest to the investor’s percent gain on this investment?
(A) 92%
(B) 240%
(C) 280%
(D) 300%
(E) 380%
OA is C.
I got confused regarding brokerage fee. Should the fee be applied individually to total purchase price and the total selling price or combined. Could you please clarify ?
Hi Rohan,
You do it individually or combined it doesnt matter here.
2% of (A + B) = 2% of A + 2 % of B.
So you combine it here or do it individually, its same result.
Anyways, you need to worry about 2 percent here because its a negligible amount.
If you could approximate, Purchase price is around 600. Infact little more than 600 and Sellling price little less than 2400.
approximately 1800/600.
Answer has to be little less than 300 percent.
So the answer is C.
PS: Answer choices are wide enough so you could approximate.
Hope this is clear.
