On Monday, the opening price of a certain stock was $100 per share and

Question

On Monday, the opening price of a certain stock was $100 per share and its closing price was $110 per share. On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday, and on Wednesday the closing price of the stock was 4 percent greater than its closing price on Tuesday. What was the approximate percent change in the price of the stock from its opening price on Monday to its closing price on Wednesday?

A. A decrease of 6%
B. A decrease of 4%
C. A decrease of 1%
D. An increase of 3%
E. An increase of 4%

NEW question from GMAT® Quantitative Review 2019

(PS00335)

A. A decrease of 6%
B. A decrease of 4%
C. A decrease of 1%
D. An increase of 3%
E. An increase of 4%

(PS00335)

PKN · Accepted Answer

Monday:- Opening price per share=100$ & Closing price per share=$110
Tuesday:-The closing price of the stock was 10 percent less than its closing price on Monday.
Or, Closing share price=110(1-0.10)=110*0.9=$99
Wednesday:- The closing price of the stock was 4 percent greater than its closing price on Tuesday.
Or, Closing share price=99(1+0.04)=99*1.04=$102.96

Now, %change in the price of the stock from its opening price on Monday to its closing price on Wednesday= \frac{102.96-100}{100}*100 =2.96%
Positive sign in percentage change means increase in share price.

Ans. (D)

bhanu88 · Answer

D ... Tuesday closing price...99...Wednesday 102.96.. approx change was 3%

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Abhishek009 · Answer

Monday : Opening - 100 , Closing - 110
Tuesday : Opening - 110 , Closing - 99
Wednesday : Opening - 99, Closing - 99*104/100 = 102.96

Thus, there will be an Increase of Approx 3%, Answer must be (D)

ScottTargetTestPrep · Answer

The closing price on Wednesday was:

110 x 0.9 x 1.04 = 102.96, which is about 103

So the percent change is:

(103 - 100)/100 x 100 = increase of 3%

Answer: D

BrentGMATPrepNow · Answer

On Monday, the opening price of a certain stock was  $100  per share and its closing price was  $110  per share.   
  On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday,  
We can say that the stock LOST 10% of its value. 
OR we can say that the stock RETAINED 90% of its value. 
In other words, Tuesday's closing price = 90% of  $110  = (0.9)( $110 ) =  $99

On Wednesday, the closing price of the stock was 4 percent greater than its closing price on Tuesday  
In other words, the stock increased by 4% of  $99 
In other words, Wednesday's closing price =  $99  + (4% of  $99 )
ASIDE: since the question asks us for an  approximate  percentage change, we can APPROXIMATE the value of 4% of  $99 
4% of $100 = $4, so 4% of  $99  is VERY CLOSE to $4
Wednesday's closing price ≈  $99  + $4 ≈  $103

What was the approximate percentage change in the price of the stock from its opening price on Monday to its closing price on Wednesday?  
The stock increased from   $100   to   $103  
This represents a 3% increase.

Answer: D

Cheers,
Brent

KingAdam44 · Answer

Straightforward question:

Monday: From 100 to 110 (+10% of 100=+10)
Tuesday: From 110 to 99 (-10% of 110= -11)
Wednesday: From 99 to more than 102.5 anyway (just as a quick approximation, I wrote this solution as I did my calculus), since +4% of 99 will be like +4% of 100 so more than 3.5 which will make the final result bigger than 102.5 and smaller than 103!

Hence, OA is D! (Found in 24 seconds)

MHIKER · Answer

Monday Opening 100
Monday Closing 100*1.10= 110
Tuesday opening = 110
Tuesday closing = 110* 0.90= 99
Wednesday opening = 99
Wednesday closing = 99*1.04= 102.96

The increase from Monday Opening 2.96
Approximate percentage = (100/2.96)*100= 3%

The answer is D

Basshead · Answer

Monday opening: $100
Monday close: $110
Tuesday close: $99
Wednesday close: approximately 102.9

From Monday opening to Wednesday close the approximate percent change was +3%.

Answer is D.

Harsh9676 · Answer

IMO D

On Monday, Opening Price = 100 and Closing Price = 110

On Tuesday, Closing price = 110 * 0.9 = 99

On wednesday, closing price = 99 * 1.04 = 102.96

So from Monday to Wednesday, the price increased from 100 to 102.96

% Change = (closing -opening) / Opening = (102.96 - 100)/100

= 2.96%

An increase of roughly 3%

Jainam24 · Answer

We can bypass the numbers although they are easy by applying the successive change formula which is as follows: 
 -a-b+(ab)/100 
The signs of a and b are dependent on whether there is an increase(+) or decrease(-) 
So there was a 10% increase & then decrease which is: 
10-10+10/100=1% decrease 
Now a=1% decrease i.e. -1 and b=4%
According to the formula 
-1+4-(1*4)/100 
Clearly it is an increase so eliminate A B and C 
Down to D and E 
E shows that there is a 4% increase however through the formula we know that it is 3-4/100. 
So D is the ans

djangobackend · Answer

why the is the question approximation when it required FULL calculation for the answer lol

Krunaal · Answer

To trap someone who thinks that increase could be of $4 i.e. 4%, where as the increase is $2.96 which is  approximately  $3, and 3%

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