At the end of the first quarter, the share price of a : Quant Question Archive [LOCKED]
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 20 Jan 2017, 03:03

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# At the end of the first quarter, the share price of a

Author Message
Manager
Joined: 13 Mar 2007
Posts: 98
Followers: 1

Kudos [?]: 32 [0], given: 0

At the end of the first quarter, the share price of a [#permalink]

### Show Tags

02 Apr 2008, 14:00
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

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?

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?
SVP
Joined: 29 Aug 2007
Posts: 2492
Followers: 67

Kudos [?]: 734 [0], given: 19

Re: A question from GMATPrep [#permalink]

### Show Tags

02 Apr 2008, 14:20
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?

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%
_________________

Gmat: http://gmatclub.com/forum/everything-you-need-to-prepare-for-the-gmat-revised-77983.html

GT

Senior Manager
Joined: 16 Aug 2004
Posts: 327
Location: India
Followers: 1

Kudos [?]: 47 [0], given: 0

Re: A question from GMATPrep [#permalink]

### Show Tags

03 Apr 2008, 02:08
Gmat 700, you have to take 120 (q1 result) as the base and not 100 and therefore 25%
CEO
Joined: 21 Jan 2007
Posts: 2756
Location: New York City
Followers: 11

Kudos [?]: 854 [0], given: 4

Re: A question from GMATPrep [#permalink]

### Show Tags

03 Apr 2008, 07:20
1
This post was
BOOKMARKED
Holding Period Return = (Ending - Beginning) / Beginning

h1 = 100
h2 = 120
h3 = 150

(150 - 120) / 120
30 / 120
25%
_________________

You tried your best and you failed miserably. The lesson is 'never try'. -Homer Simpson

GMAT Club Legend
Joined: 09 Sep 2013
Posts: 13459
Followers: 575

Kudos [?]: 163 [0], given: 0

Re: At the end of the first quarter, the share price of a [#permalink]

### Show Tags

02 Sep 2015, 08:37
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: At the end of the first quarter, the share price of a   [#permalink] 02 Sep 2015, 08:37
Display posts from previous: Sort by