At the end of the first quarter, the share price of a certain mutual

At the end of the first quarter, the share price of a certain mutual fund was 20 percent higher than it was at 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?

A. 20%
B. 25%
C. 30%
D. 33%
E. 40%

Another method is to use the formula for 2 successive percentage changes:

Total = a + b + ab/100

50 = 20 + b + 20b/100

b = 25

Yet another method is to use the multipliers:

50% increase is 3/2
20% increase is 6/5

3/2 = 6/5*x
x = 5/4

5/4 is a 25% increase.

Answer (B)

Use whatever works best for you.

Consider the initial share price of a certain mutual fund as $100
After 1st quarter price = 1.2 * 100 = $120
Now the twist comes
After 2nd quarter price increased by 50% of the original price which was at the beginning of the year
So price after 2nd quarter = 1.5 * 100 = 150
Percent increase in the share price from the end of the first quarter to the end of the second quarter = \(\frac{(150-120)}{120}\) * 100 = 25%
correct answer - B

Share price at the end of 1st quarter 1.2x
Share price at the end of 2nd quarter 1.5x

% increase= 1.5x-1.2x/1.2x*100= 25%

B is the answer

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