It is currently 20 Jan 2018, 09:14

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# A dealer buys a boat at auction and pays 10 % below

Author Message
TAGS:
Moderator
Joined: 18 Apr 2015
Posts: 2674
Followers: 39

Kudos [?]: 382 [0], given: 1744

A dealer buys a boat at auction and pays 10 % below [#permalink]  30 Jul 2017, 08:17
Expert's post
00:00

Question Stats:

100% (01:21) correct 0% (00:00) wrong based on 1 sessions

A dealer buys a boat at auction and pays 10 % below list price. He then sells the boat at a profit of 30% of his cost of the boat. At the same selling price, what would the dealer's percent profit over his cost have been if he had bought the boat at list price?

[Reveal] Spoiler:
17%

_________________
Director
Joined: 03 Sep 2017
Posts: 522
Followers: 0

Kudos [?]: 231 [1] , given: 66

Re: A dealer buys a boat at auction and pays 10 % below [#permalink]  25 Sep 2017, 06:04
1
KUDOS
Let's use some numbers. Fix the original price of the boat at 100. Then, the dealer bought it at (1-0.10)*100=90 with the discount of 10%. Then, the profit is 30% of 90, i.e. 0.3*90=27. Thus, the selling price must be 90+27=117, given the formula profit = sell price - cost. Now, keeping the selling price at 117, if the dealer would have paid the boat fully, the cost would have been 100 and the profits 117-100=17. Then, the profits are 17/100*100% of the cost, i.e. 17%.
Re: A dealer buys a boat at auction and pays 10 % below   [#permalink] 25 Sep 2017, 06:04
Display posts from previous: Sort by