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

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Joined: 02 Sep 2009
Posts: 58428
In January, the value of a stock increased by 25%; and in February, it  [#permalink]

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10 Apr 2019, 23:27
00:00

Difficulty:

15% (low)

Question Stats:

92% (01:49) correct 8% (02:16) wrong based on 25 sessions

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 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 11 Apr 2019, 00:25 1 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
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Joined: 18 Aug 2017
Posts: 5031
Location: India
Concentration: Sustainability, Marketing
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WE: Marketing (Energy and Utilities)
Re: In January, the value of a stock increased by 25%; and in February, it  [#permalink]

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11 Apr 2019, 01:08
1
1
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 Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 8125 Location: United States (CA) Re: In January, the value of a stock increased by 25%; and in February, it [#permalink] ### Show Tags 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.

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Re: In January, the value of a stock increased by 25%; and in February, it   [#permalink] 13 Apr 2019, 19:16
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