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If the price of a certain bond on May 1st was 2/3 the price

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Raghunathnallu
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If the price of a certain bond on May 1st was 2/3 the price [#permalink] New post   Updated on: 24 Mar 2014, 00:45
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If the price of a certain bond on May 1st was 2/3 the price of the bond on June 1st and the price of the bond on July 1st was 25% greater than the price of the bond on May 1st. then the price of the bond on June 1st st was what percent of the average (arithmetic mean) price of the bond on May 1st and July 1st?

A. 50%
B. 75%
C. 120%
D. 133 1/3%
E. 150%
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D

Originally posted by Raghunathnallu on 23 Mar 2014, 13:06.
Last edited by Bunuel on 24 Mar 2014, 00:45, edited 1 time in total.
Edited the question.
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PareshGmat
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Re: If the price of a certain bond on may 1st was 2/3 the price [#permalink] New post   23 Mar 2014, 19:49
Let price in June = x

Price in May\(= \frac{2x}{3}\)

Price in July \(= \frac{2x}{3} * \frac{125}{100}\)

Avg price of May & July \(= \frac{\frac{2x}{3} + \frac{2x}{3} * \frac{125}{100}}{2}\)

\(= \frac{75x}{100}\)

x is greater than \(\frac{75x}{100}by \frac{25x}{100}\)

In terms of percentage, it will be

\(\frac{100 * x}{\frac{75x}{100}}\)

Answer = 133.33% = D
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Raghunathnallu
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Re: If the price of a certain bond on may 1st was 2/3 the price [#permalink] New post   23 Mar 2014, 20:17
PareshGmat wrote:
Let price in June = x

Price in May\(= \frac{2x}{3}\)

Price in July \(= \frac{2x}{3} * \frac{125}{100}\)

Avg price of May & July \(= \frac{\frac{2x}{3} + \frac{2x}{3} * \frac{125}{100}}{2}\)

\(= \frac{75x}{100}\)

x is greater than \(\frac{75x}{100}by \frac{25x}{100}\)

In terms of percentage, it will be

\(\frac{100 * x}{\frac{75x}{100}}\)

Answer = 133.33% = D



I have one question - In the month of July I have considered the following

July = [2][/3]X[*][25[/100] =[1[/6]X

Average = 15/18X

now to find out the X value = X/[15[/18]x = 120% My answer is C. please let me know how you got 125/100 in July and the next steps little more explicit. Thank you so much for your help.
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PareshGmat
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Re: If the price of a certain bond on may 1st was 2/3 the price [#permalink] New post   23 Mar 2014, 20:47
Raghunathnallu wrote:
PareshGmat wrote:
Let price in June = x

Price in May\(= \frac{2x}{3}\)

Price in July \(= \frac{2x}{3} * \frac{125}{100}\)

Avg price of May & July \(= \frac{\frac{2x}{3} + \frac{2x}{3} * \frac{125}{100}}{2}\)

\(= \frac{75x}{100}\)

x is greater than \(\frac{75x}{100}by \frac{25x}{100}\)

In terms of percentage, it will be

\(\frac{100 * x}{\frac{75x}{100}}\)

Answer = 133.33% = D



I have one question - In the month of July I have considered the following

July = [2][/3]X[*][25[/100] =[1[/6]X

Average = 15/18X

now to find out the X value = X/[15[/18]x = 120% My answer is C. please let me know how you got 125/100 in July and the next steps little more explicit. Thank you so much for your help.



Price of the bond on july 1st was 25% greater than the price of the bond on may 1st

For Example, if the price in may was 100, then price in month of july would be 25 more i.e 125

Using this analogy, we can calculate the price wrt 2x/3

One we have the above value corrected, the average comes up to 75x/100

Please note that x > 75x/100 OR we can say 100x/100 > 75x/100

So 75x/100 has increased by 25x/100 to reach 100x/100 (or x)

So in terms of percentage, it will be increase of 33.33 or it will reach 133.33%

Hope this helps
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Raghunathnallu
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Re: If the price of a certain bond on may 1st was 2/3 the price [#permalink] New post   23 Mar 2014, 23:09
PareshGmat wrote:
Raghunathnallu wrote:
PareshGmat wrote:
Let price in June = x

Price in May\(= \frac{2x}{3}\)

Price in July \(= \frac{2x}{3} * \frac{125}{100}\)

Avg price of May & July \(= \frac{\frac{2x}{3} + \frac{2x}{3} * \frac{125}{100}}{2}\)

\(= \frac{75x}{100}\)

x is greater than \(\frac{75x}{100}by \frac{25x}{100}\)

In terms of percentage, it will be

\(\frac{100 * x}{\frac{75x}{100}}\)

Answer = 133.33% = D



I have one question - In the month of July I have considered the following

July = [2][/3]X[*][25[/100] =[1[/6]X

Average = 15/18X

now to find out the X value = X/[15[/18]x = 120% My answer is C. please let me know how you got 125/100 in July and the next steps little more explicit. Thank you so much for your help.



Price of the bond on july 1st was 25% greater than the price of the bond on may 1st

For Example, if the price in may was 100, then price in month of july would be 25 more i.e 125

Using this analogy, we can calculate the price wrt 2x/3

One we have the above value corrected, the average comes up to 75x/100

Please note that x > 75x/100 OR we can say 100x/100 > 75x/100

So 75x/100 has increased by 25x/100 to reach 100x/100 (or x)

So in terms of percentage, it will be increase of 33.33 or it will reach 133.33%

Hope this helps


Thank you very much, Yes indeed.
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Re: If the price of a certain bond on May 1st was 2/3 the price [#permalink] New post   24 Mar 2014, 00:53
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Raghunathnallu wrote:
If the price of a certain bond on May 1st was 2/3 the price of the bond on June 1st and the price of the bond on July 1st was 25% greater than the price of the bond on May 1st. then the price of the bond on June 1st was what percent of the average (arithmetic mean) price of the bond on May 1st and July 1st?

A. 50%
B. 75%
C. 120%
D. 133 1/3%
E. 150%


The price on June 1st = 12 (assume);
The price on May 1st = 2/3*12 = 8;
The price on July 1st = 8*1.25 = 10.

The average price of the bond on May 1st and July 1st = (8+10)/2 = 9.

The price of the bond on June 1st (12) is 4/3 times (134%) the average price of the bond on May 1st and July 1st.

Answer: D.

Hope it's clear.
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Re: If the price of a certain bond on May 1st was 2/3 the price [#permalink] New post   16 Nov 2019, 01:56
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Re: If the price of a certain bond on May 1st was 2/3 the price [#permalink]
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