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10 May 2017, 02:31
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15% (low)

Question Stats:

91% (01:14) correct 9% (02:46) wrong based on 32 sessions

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Jon invested $10000 in a certain stock exactly three years ago. The value of the stocks decreased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the stocks today? A.$8500
B. $8505 C.$9500
D. $10,395 E.$10,500

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Re: Jon invested $10000 in a certain stock exactly three years ago. The [#permalink] ### Show Tags 10 May 2017, 02:43 1 Initial Stock Value:$10000
During 1st year, decrement of 10% hence, Value of stock= 0.9*10000 i.e. $9000 During 2nd year, increment of 5% hence, value of stock = 1.05*9000 i.e$9450
During 3rd year, decrement of 10% hence, Value of stock= 0.9*9450 i.e. $8505 Hence, Option B is the correct answer. Senior SC Moderator Joined: 22 May 2016 Posts: 2033 Jon invested$10000 in a certain stock exactly three years ago. The  [#permalink]

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10 May 2017, 06:01
Bunuel wrote:
Jon invested $10000 in a certain stock exactly three years ago. The value of the stocks decreased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the stocks today? A.$8500
B. $8505 C.$9500
D. $10,395 E.$10,500

In successive percent increases and/or decreases, another very fast way is to "multiply the multipliers" (see links below), then multiply that product by the original amount.

1st change is 10% decrease, hence 1 - .10 = .90

2nd change is 5% increase, hence 1 + .05 = 1.05

3rd change is another 10% decrease = .90

(.9)(1.05)(.9) = .8505

.8505 x $10,000 =$8,505

https://magoosh.com/gmat/2012/understanding-percents-on-the-gmat/

https://gmatclub.com/forum/excellent-method-for-calculating-successive-percentages-185973.html
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Re: Jon invested $10000 in a certain stock exactly three years ago. The [#permalink] ### Show Tags 12 May 2017, 13:37 Bunuel wrote: Jon invested$10000 in a certain stock exactly three years ago. The value of the stocks decreased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the stocks today?

A. $8500 B.$8505
C. $9500 D.$10,395
E. $10,500 We are given that a 10,000 dollar stock decreased by 10 percent, increased by 5 percent and then decreased by 10%. Thus, the new price is: 10,000 x (9/10) x (105/100) x (9/10) = 9 x 105 x 9 =$8505

Answer: B
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Re: Jon invested $10000 in a certain stock exactly three years ago. The [#permalink] ### Show Tags 16 May 2017, 05:56 Jon invested$10000 in a certain stock exactly three years ago. The value of the stocks decreased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the stocks today?

A. $8500 B.$8505
C. $9500 D.$10,395
E. $10,500 Principal stock amount = 10000 After first year stock decreased by 10% = 90% of 10000 After second year stock increased by 5% = 105% of 90% of 10000 After third year stock decreased by 10% = 90% of 105% of 90% of 10000 Value of stocks today = $$\frac{90}{100}$$ x $$\frac{105}{100}$$ x $$\frac{90}{100}$$ x 10000 =$8505
Answer B....

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Re: Jon invested $10000 in a certain stock exactly three years ago. The [#permalink] ### Show Tags 16 May 2017, 08:02 Bunuel wrote: Jon invested$10000 in a certain stock exactly three years ago. The value of the stocks decreased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the stocks today?

A. $8500 B.$8505
C. $9500 D.$10,395
E. $10,500 Let the original value be$100

Value after 1st year = $$\frac{90}{100*100}$$ $$= 90$$

Value after 2nd year = $$\frac{105}{100*90}$$ $$= 94.50$$

Value after 3rd year = $$\frac{90}{100*94.50}$$ $$= 85.05$$

Thus, the value of the stock will be (B) $8505 _________________ Thanks and Regards Abhishek.... PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only ) Re: Jon invested$10000 in a certain stock exactly three years ago. The &nbs [#permalink] 16 May 2017, 08:02
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