GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 22 Oct 2019, 17:02

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# The price of each share of stock K, when traded at a certain stock exc

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 58427
The price of each share of stock K, when traded at a certain stock exc  [#permalink]

### Show Tags

28 Jun 2017, 03:31
00:00

Difficulty:

35% (medium)

Question Stats:

71% (02:29) correct 29% (03:05) wrong based on 84 sessions

### HideShow timer Statistics

The price of each share of stock K, when traded at a certain stock exchange, first goes up by p percent and then falls down by p percent every alternate day. After one such up-down cycle, the price of the stock fell by \$2. If, after another such up-down cycle, the price per share of stock K comes to \$196.02, what was the original price per share of stock K?

(A) \$300
(B) \$270
(C) \$250
(D) \$200
(E) \$150

_________________
Senior Manager
Joined: 28 May 2017
Posts: 281
Concentration: Finance, General Management
Re: The price of each share of stock K, when traded at a certain stock exc  [#permalink]

### Show Tags

28 Jun 2017, 05:21
2
1
1
Bunuel wrote:
The price of each share of stock K, when traded at a certain stock exchange, first goes up by p percent and then falls down by p percent every alternate day. After one such up-down cycle, the price of the stock fell by \$2. If, after another such up-down cycle, the price per share of stock K comes to \$196.02, what was the original price per share of stock K?

(A) \$300
(B) \$270
(C) \$250
(D) \$200
(E) \$150

Logical Approach

After 1st up-down cycle, Price decreased by = 2
After 2nd up-down cycle, final Price of the stock is = 196.02
After 2nd up-down cycle, Price should also decrease by the same tune. But this time, decrease would be little bit less than \$2 because after first cycle price of the stock has decreased by 2

So we could safely assume that after two cycles price decrease by 4.
So the initial price of the stock should be = 196.02 + 4 = 200

Closest option is D

_________________
If you like the post, show appreciation by pressing Kudos button
Senior Manager
Joined: 28 Jun 2015
Posts: 283
Concentration: Finance
GPA: 3.5
Re: The price of each share of stock K, when traded at a certain stock exc  [#permalink]

### Show Tags

28 Jun 2017, 05:42
2
1
Let the original price per share of stock K be \$100, and p = 10%.

First cycle: \$100 --> \$110 --> \$99.

Fall in price for a \$100 share = \$1, so for a \$2 fall in price, the share price might be \$200.

First cycle: \$200 --> \$220 --> \$198
Second cycle: \$198 --> \$217.8 --> \$196.02.

Ans - D.
_________________
I used to think the brain was the most important organ. Then I thought, look what’s telling me that.
Target Test Prep Representative
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 8129
Location: United States (CA)
Re: The price of each share of stock K, when traded at a certain stock exc  [#permalink]

### Show Tags

30 Jun 2017, 09:19
1
1
1
Bunuel wrote:
The price of each share of stock K, when traded at a certain stock exchange, first goes up by p percent and then falls down by p percent every alternate day. After one such up-down cycle, the price of the stock fell by \$2. If, after another such up-down cycle, the price per share of stock K comes to \$196.02, what was the original price per share of stock K?

(A) \$300
(B) \$270
(C) \$250
(D) \$200
(E) \$150

We are given that after the first up-down cycle, the price only fell \$2 and the price is \$196.02 after two up-down cycles. So, the original price would be higher than \$196.02 but not that much higher. We see that of all the given answer choices, \$200 is the one that fits the criteria. So, we can make an educated guess that \$200 is the right answer. Of course, we should also check that it is the right answer:

If the original price is \$200 and after the first up-down cycle the price fell \$2, the price fell to \$198, which is a 1% decrease. After the second up-down cycle, the price should fall another 1% (but from \$198). So, the price would be 198(0.99) = \$196.02, which is exactly what the price was after two up-down cycles. So, the original price was indeed \$200.

_________________

# Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
122 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

If you find one of my posts helpful, please take a moment to click on the "Kudos" button.

Non-Human User
Joined: 09 Sep 2013
Posts: 13411
Re: The price of each share of stock K, when traded at a certain stock exc  [#permalink]

### Show Tags

16 Aug 2019, 12:15
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: The price of each share of stock K, when traded at a certain stock exc   [#permalink] 16 Aug 2019, 12:15
Display posts from previous: Sort by

# The price of each share of stock K, when traded at a certain stock exc

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne