Bunuel wrote:
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)
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) =
$99On Wednesday, the closing price of the stock was 4 percent greater than its closing price on TuesdayIn other words, the stock increased by 4% of
$99In 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
$994% of $100 = $4, so 4% of
$99 is VERY CLOSE to $4
Wednesday's closing price ≈
$99 + $4 ≈
$103What 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
$103This represents a 3% increase.
Answer: D
Cheers,
Brent
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