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### Show Tags

10 May 2017, 01:29
00:00

Difficulty:

15% (low)

Question Stats:

96% (00:22) correct 4% (00:00) wrong based on 39 sessions

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At the start of trading on a particular day the price of stock x is $5. If during the day the price falls to$4 by what percent does the price of the stock decrease?

A. 8%
B. 12.5%
C. 14%
D. 16%
E. 20%

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Joined: 12 Nov 2016
Posts: 16
Re: At the start of trading on a particular day the price of stock x is $5 [#permalink] ### Show Tags 10 May 2017, 02:18 Initial price:$5
Now, note that price falls to $4 So, Final price:$4
Difference in price: $1 Percentage decrease in price is given as: $$\frac{Difference}{Initial Price}*100$$ which in this case would be: $$\frac{1}{5}*100$$ which is 20%. Hence, option E should be the correct answer. Target Test Prep Representative Status: Head GMAT Instructor Affiliations: Target Test Prep Joined: 04 Mar 2011 Posts: 2830 Re: At the start of trading on a particular day the price of stock x is$5  [#permalink]

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12 May 2017, 12:40
Bunuel wrote:
At the start of trading on a particular day the price of stock x is $5. If during the day the price falls to$4 by what percent does the price of the stock decrease?

A. 8%
B. 12.5%
C. 14%
D. 16%
E. 20%

We can create the following equation in which n = the percent decrease:

5(1 - n/100) = 4

5(100 - n)/100 = 4

500 - 5n = 400

5n = 100

n = 20%

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13 May 2017, 02:22
At the start of trading on a particular day the price of stock x is $5. If during the day the price falls to$4 by what percent does the price of the stock decrease?

Percent change = difference in price/initial price * 100
Initial price = $5 , Price falls to =$4
Therefore Difference in price = 5-4 = $1 Percent Change = $$\frac{1}{5}$$ * 100 = 20% Answer E... _________________ Kindly press "+1 Kudos" to appreciate CEO Status: GMATINSIGHT Tutor Joined: 08 Jul 2010 Posts: 2722 Location: India GMAT: INSIGHT Schools: Darden '21 WE: Education (Education) At the start of trading on a particular day the price of stock x is$5  [#permalink]

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13 May 2017, 04:31
Bunuel wrote:
At the start of trading on a particular day the price of stock x is $5. If during the day the price falls to$4 by what percent does the price of the stock decrease?

A. 8%
B. 12.5%
C. 14%
D. 16%
E. 20%

% change = $$\frac{(Final_Value - Initial_Value)}{Initial_Value}$$ *100

i.e. % decrease = (4-5/5)*100 = (1/5)*100 = -20%

Negative Value means % Decrease and Positive result means % Increase
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