Question

Bobby bought two shares of stock, which he sold for $96 each. If he had a profit of 20 percent on the sale of one of the shares but a loss of 20 percent on the sale of the other share, then on the sale of both shares combined Bobby had:____________
a) a profit of $10
b) a profit of $8
c) a loss of $8
d) a loss of $10
e) neither a profit nor a loss

Answer 1

Answer:

The correct option is c) a loss of $8.

Step-by-step explanation:

Consider the provided information.

If the selling price of two item is same and one item sold at a profit of x % and other at a loss of x % in that case total sale result loss:

To calculate the loss use the formula: $Loss\ \%=(\frac{x}{10})^2\ \%$

It is given that he had a profit of 20 percent on the sale of one of the shares but a loss of 20 percent on the sale of the other share, where the selling price is $96 each.

That means the total sale result will be a loss.

Now use the above formula by substitute x=20.

$Loss\ \%=(\frac{20}{10})^2\ \%\\\\Loss\ \%=4\ \%$

It is given that the sales price is $96 of each that means total sales price is:

$96+$96=$192

Let the cost price of the shares were x.

According to question: x-4% of x = 192

$x-\frac{4}{100}\times x = 192\\\\x-0.04x = 192\\\\0.96x = 192\\x = 200$

Hence, the cost price of the shares was 200.

Loss = Cost price -Sales price

Loss = $200 - $192

Loss = $8

Hence, the correct option is c) a loss of $8.