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# Over a period of 2 years

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Director
Status: Gonna rock this time!!!
Joined: 22 Jul 2012
Posts: 506

Kudos [?]: 72 [1], given: 562

Location: India
GMAT 1: 640 Q43 V34
GMAT 2: 630 Q47 V29
WE: Information Technology (Computer Software)
Over a period of 2 years [#permalink]

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06 Jan 2013, 03:55
1
KUDOS
Kindly help with this IR Q. PFA

Answers are indicated with green arrow.
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Kudos [?]: 72 [1], given: 562

Intern
Joined: 30 Aug 2007
Posts: 4

Kudos [?]: 3 [2], given: 4

Re: Over a period of 2 years [#permalink]

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06 Jan 2013, 22:24
2
KUDOS
Assume A10 & B10 are the share price in 2010 for Share A & Share B respectively.

Similarly A12 & B12 are the share price in 2012.

Value of B in 2010

A10 + B10 = N

A10/B10 = 0.8

Therefore , 0.8 * B10 + B10 = N

1.8 *B10 = N or B10 = N/1.8

A12/B12 = ?

A = A12 -A10 /A10 = A12 / A10 - 1

A+1 = A12/A10 =>A12 = A10 (A+1)

B = B12 - B10 / B10 = B12 / B10 -1

B+1 = B12/B10 =>B12 = B10 (B+1)

A12/B12 = A10 (A+1) / B10 (B+1) or 0.8 * (A+1) / (B+1)

Kudos [?]: 3 [2], given: 4

Intern
Joined: 28 Jan 2012
Posts: 5

Kudos [?]: [0], given: 2

Re: Over a period of 2 years [#permalink]

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08 Jan 2013, 21:55
None of the option is correct.
For 2nd part, correct answer = 0.8 [(100 + A) / (100 + B)]

2nd column D will only be correct if the following statement stated as below:
"The percent change in quantity of X is calculated using the formula:
(Xnew - Xold) / Xold

Kudos [?]: [0], given: 2

Intern
Joined: 19 May 2012
Posts: 34

Kudos [?]: 9 [0], given: 0

Location: India
GMAT Date: 03-03-2014
WE: Information Technology (Computer Software)
Re: Over a period of 2 years [#permalink]

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08 Jan 2013, 22:18
The ratio 2012 is having wrong options...
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Kudos [?]: 9 [0], given: 0

Manager
Joined: 11 Jun 2010
Posts: 83

Kudos [?]: 18 [0], given: 17

Re: Over a period of 2 years [#permalink]

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01 Apr 2013, 18:34
Shashank3016 wrote:
None of the option is correct.
For 2nd part, correct answer = 0.8 [(100 + A) / (100 + B)]

2nd column D will only be correct if the following statement stated as below:
"The percent change in quantity of X is calculated using the formula:
(Xnew - Xold) / Xold

agreed. for second part, the ratio of stock A to Stock B in 2012 = 0.8 * (100+a) / (100+b)

Kudos [?]: 18 [0], given: 17

Senior Manager
Joined: 24 Aug 2009
Posts: 497

Kudos [?]: 867 [0], given: 276

Schools: Harvard, Columbia, Stern, Booth, LSB,
Re: Over a period of 2 years [#permalink]

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02 Apr 2013, 06:33
Sachin9 wrote:
Kindly help with this IR Q. PFA

Answers are indicated with green arrow.

First of all the options are correct.
Now the most important point is the Easiest way to solve this question. Here it comes---

Lets assume price of stock A in 2010 = 80 (Pick any easy number)
Lets assume price of stock B in 2010 = 100 (Pick any easy number so that ratio of A/B is 0.8)
(We need to search for an option that will be equal to 100)

Because both A & B indicates percentage change in prices, lets assume A = B = 10% = 0.1(Pick any easy number)

So the price of Stock A in 2012 will be = 80 + 8 = 88
So the price of Stock B in 2012 will be = 100 + 10 = 110
So the ratio of Stock prices in 2012 will be = 88/110 = 8/10 = 0.8
(We need to search for an option that will be equal to 0.8)

Just put these values and you will get the answer.

Hope many will find it useful.

Fame
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Kudos [?]: 867 [0], given: 276

Senior Manager
Joined: 08 Apr 2013
Posts: 269

Kudos [?]: 30 [0], given: 27

Re: Over a period of 2 years [#permalink]

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11 Jun 2014, 00:08
A12=A10 (1+A/100)

so the wrong answer for the second question.
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Kudos [?]: 30 [0], given: 27

Re: Over a period of 2 years   [#permalink] 11 Jun 2014, 00:08
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# Over a period of 2 years

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