Question: A wholesaler purchases “n” mobile phones from the manufacturer at a price of $120 per mobile and sells them to the retailer at a price of $180 per mobile. Because the payments are made online, the wholesaler needs to pay a transaction charge of 5% while purchasing from the manufacturer and selling to the retailer. What is the profit percentage of the wholesaler after purchasing and selling all the “n” mobile phones?

1. 33.3%
2. 36%
3. 50%
4. 65%
5. 75%

“A synchronized diving competition will feature 25 synchronized jumps of 2 divers each. At a minimum, how many divers are needed to ensure that each of the 25 jumps features a different combination of divers?”- is a topic of the GMAT Quantitative reasoning section of GMAT. This question has been taken from the book “GMAT Official Guide Quantitative Review”. To solve GMAT Problem Solving questions a student must have knowledge about a good amount of qualitative skills. The GMAT Quant topic in the problem-solving part requires calculative mathematical problems that should be solved with proper mathematical knowledge.

Answer: B

Solutions and Explanation

Approach Solution (1):

Let n = 1

Wholesaler pays transaction charges both during his purchase and his selling

Purchase amount including transaction charges = 120 + 5% = 126

Selling amount including tr. charges = 180 – 5% = 171 (since he loses 5% because of transaction)

(171 – 126) / 126 = 45/126 = 5/14 = 0.357 = 0.36 approx = 36%

Correct Option: B

Approach Solution (2):

Total cost price = 120 + 5% of 120 = 120 + (1/20) * 120 = 126

Net selling price = 180 – 5% of 180 = 180 – (1/20) * 180 = 171

Profit % = (171 – 126)/126 * 100 = 45/126 * 100 = 36%

Correct Option: B

Suggested GMAT Problem Solving Samples

• The Interior Angles of a Polygon are in Arithmetic Progression GMAT Problem Solving
• For Any Four Digit Number, abcd, *abcd*= (3^a)(5^b)(7^c)(11^d) GMAT Problem Solving
• GMAT Problem Solving- Find the greatest number that will divide 43, 91 and 183
• If \(2^{98}=256L+N\) , Where L and N are Integers and \(0 \leq N \leq 4\) , What is the Value of N? GMAT Problem Solving
• What is the Value of x? 1) x^2 + x + 10 = 16 2) x = 4y^4+2y^2+2 GMAT Problem Solving
• For How Many Values of k is 12^12 the Least Common Multiple GMAT Problem Solving
• Is Square Root = Always Positive? GMAT Problem Solving
• \(\frac{15^{11}-15^{10}}{14}=?\) GMAT Problem Solving
• In a Drawer, There are 4 White Socks, 3 Blue Socks, and 5 Grey Socks GMAT Problem Solving
• A Contractor Estimated that his 10-Man Crew Could Complete the Construction in 110 Days if There Was no Rain. GMAT Problem Solving
• If n = \(3^8\)– \(2^8\), Which of the Following is Not a Factor of n? GMAT Problem Solving
• Two Consultants, Mary and Jim, Can Type up a Report in 12.5 Hours and Edit it in 7.5 Hours. GMAT Problem Solving
• GMAT Problem Solving - The Price of Raw Materials Has Gone up by 15%
• Greg Assembles Units of a Certain Product at a Factory. GMAT Problem Solving
• After 6 Games, Team B Had an Average of 61.5 Points Per Game. GMAT Problem Solving
• If 10, 12 and ‘x’ are Sides of an Acute Angled Triangle, How Many Integer Values of ‘x’ are Possible? GMAT Problem Solving
• There are 100 Apples in a Bag of which 98% are Green and Rest are Red ​ GMAT Problem Solving
• A palindrome is a number that reads the same forward and backward​ GMAT Problem Solving
• GMAT Problem Solving - Iqbal Dealt Some Cards to Mushtaq and himself from a Full Pack of Playing Cards
• A Rectangular Box has Dimensions 12*10*8 Inches GMAT Problem Solving