GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 19 Apr 2019, 07:47

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

In January, the value of a stock increased by 25%; and in February, it

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 54371
In January, the value of a stock increased by 25%; and in February, it  [#permalink]

Show Tags

New post 10 Apr 2019, 23:27
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

93% (01:31) correct 7% (02:07) wrong based on 14 sessions

HideShow timer Statistics

In January, the value of a stock increased by 25%; and in February, it decreased by 20%. In March, it increased by 50%; and in April, it decreased by 40%. If Jack invested $80 in the stock on January 1 and sold it at the end of April, what was the percentage change in the price of the stock?

(A) 0%
(B) 5%
(C) 10%
(D) 40%
(E) 50%

_________________
Manager
Manager
avatar
B
Joined: 01 May 2017
Posts: 82
Location: India
Re: In January, the value of a stock increased by 25%; and in February, it  [#permalink]

Show Tags

New post 11 Apr 2019, 00:25
In January, the value of a stock increased by 25%; and in February, it decreased by 20%. In March, it increased by 50%; and in April, it decreased by 40%. If Jack invested $80 in the stock on January 1 and sold it at the end of April, what was the percentage change in the price of the stock?

(A) 0%
(B) 5%
(C) 10%
(D) 40%
(E) 50%

Let 'x' be the initial prize of the stock
Final prize in April = 1.25*0.8*1.5*0.6*x
= \(0.9X\)

Change = \(x-0.9x * 100 %\)
= 10% decrease
CEO
CEO
User avatar
P
Joined: 18 Aug 2017
Posts: 2998
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)
GMAT ToolKit User Premium Member CAT Tests
Re: In January, the value of a stock increased by 25%; and in February, it  [#permalink]

Show Tags

New post 11 Apr 2019, 01:08
Bunuel wrote:
In January, the value of a stock increased by 25%; and in February, it decreased by 20%. In March, it increased by 50%; and in April, it decreased by 40%. If Jack invested $80 in the stock on January 1 and sold it at the end of April, what was the percentage change in the price of the stock?

(A) 0%
(B) 5%
(C) 10%
(D) 40%
(E) 50%


given price = 80$
so change %
80*1.25*.8*1.5*.6 = 72 $ end of april
80-72/80 = 10 % IMO C
_________________
If you liked my solution then please give Kudos. Kudos encourage active discussions.
Target Test Prep Representative
User avatar
P
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 5784
Location: United States (CA)
Re: In January, the value of a stock increased by 25%; and in February, it  [#permalink]

Show Tags

New post 13 Apr 2019, 19:16
Bunuel wrote:
In January, the value of a stock increased by 25%; and in February, it decreased by 20%. In March, it increased by 50%; and in April, it decreased by 40%. If Jack invested $80 in the stock on January 1 and sold it at the end of April, what was the percentage change in the price of the stock?

(A) 0%
(B) 5%
(C) 10%
(D) 40%
(E) 50%


Since our answer choices are percentages, we do not need to use 80 as the stock price on January 1. We can use variable n. Thus, we have:

n x 5/4 x 4/5 x 15/10 x 6/10

n x 3/2 x 3/5 = 9n/10 = 90n/100 = 0.9n

Thus, we see the percent change is 10%.

Alternate Solution:

Since our answer choices are percentages, we do not need to use 80 as the stock price on January 1. Let’s instead use the more convenient number 100 as the starting price. In January, the stock’s value is 100 x 1.25 = 125. In February, the value is 125 x 0.80 = 100. In March, its value is 100 x 0.5 = 150, and in April it is 150 x 0.6 = 90.

Thus it has dropped $10, from $100 to $90, which is a 10% decrease.

Answer: C
_________________

Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
TTP - Target Test Prep Logo
122 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

GMAT Club Bot
Re: In January, the value of a stock increased by 25%; and in February, it   [#permalink] 13 Apr 2019, 19:16
Display posts from previous: Sort by

In January, the value of a stock increased by 25%; and in February, it

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.