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EtaCarnia
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The price of a share was subject to fluctuations in the market 12 Sep 2022, 08:08
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

25% (medium)

Question Stats:

82% (01:55) correct 18% (01:57) wrong based on 118 sessions

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The price of a share was subject to fluctuations in the market. On day 1, the price of the share was exactly $20.00 per share. On day 2, the price of the share was 120% of the price of day 1. On day 3, the price decreased by 20% with respect to day 2’s price and on day 4, the price increased by 10% with respect to day 3’s price. What was the closing price of the share on day 4?

A.$21.12

B.$24.24

C.$26.4

D.$38.72

E.$46.46
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A
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SaquibHGMATWhiz
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The price of a share was subject to fluctuations in the market 13 Sep 2022, 00:50
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EtaCarnia
The price of a share was subject to fluctuations in the market. On day 1, the price of the share was exactly $20.00 per share. On day 2, the price of the share was 120% of the price of day 1. On day 3, the price decreased by 20% with respect to day 2’s price and on day 4, the price increased by 10% with respect to day 3’s price. What was the closing price of the share on day 4?

A.$21.12

B.$24.24

C.$26.4

D.$38.72

E.$46.46
Solution:

On day 1: $20
On day 2: 120% of the price of day 1. This means 20% increase
On day 3: 20% decrease
On day 4: 10% increase

Price on day 4 \(=20\times (1+\frac{20}{100})\times (1-\frac{20}{100})\times (1+\frac{10}{100})\)
\(=20\times 1.2\times 0.8\times 1.1\)
\(=20\times 0.96\times 1.1\)
\(=20\times 1.056\)
\(=21.12\)

Hence the right answer is Option A
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The price of a share was subject to fluctuations in the market 03 Jan 2025, 23:18
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Hello from the GMAT Club BumpBot!

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