GMAT_700 wrote:

At the end of the first quarter, the share price of a certain mutual fund was 20 percent higher than it was the beginning of the year. At the end of the second quarter, the share price was 50 percent higher than it was at the beginning of the year. What was the percent increase in the share price from the end of the first quarter to the end of the second quarter?

The correct answer is 25%.

Here is what I did:

Beginning of the year: 100 --> end of the first quarter: 120

Beginning of the year: 100 --> end of the second quarter: 150

Q1 - Q2 = > 150 – 120 = 30, but the correct answer is 25. Why?

y0 = p

q1 = 1.20p

q2 = 1.50p

so % increase from q1 to q2 = 1.50p/1.20p - 1

so % increase from q1 to q2 = 1.25 - 1 = 0.25

or 25%

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