NEW HERE? LEARN MORE
closeclose
Last visit was: 28 Apr 2024, 02:03 It is currently 28 Apr 2024, 02:03
Decision Tracker
My Rewards
New posts
New comers' posts

Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

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

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 92964
Own Kudos [?]: 619569 [11]
Given Kudos: 81613
Send PM
CAT Tests Forum Quiz Mode
The price of each share of stock K, when traded at a certain stock exc [#permalink] New post   28 Jun 2017, 03:31
11
Bookmarks
Expert Reply
00:00
A
B
C
D
E

Difficulty:

55% (hard)

Question Stats:

68% (02:26) correct 32% (02:55) wrong based on 139 sessions
Hide Show 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
ShowHide Answer
Official Answer
D
User avatar
G
elegantm
Manager
Manager
Joined: 28 May 2017
Posts: 224
Own Kudos [?]: 733 [5]
Given Kudos: 12
Concentration: Finance, General Management
Send PM
Re: The price of each share of stock K, when traded at a certain stock exc [#permalink] New post   28 Jun 2017, 05:21
3
Kudos
1
Bookmarks
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

Hence Answer D
User avatar
B
TimeTraveller
Senior Manager
Senior Manager
Joined: 28 Jun 2015
Posts: 250
Own Kudos [?]: 294 [3]
Given Kudos: 47
Concentration: Finance
GPA: 3.5
Send PM
Re: The price of each share of stock K, when traded at a certain stock exc [#permalink] New post   28 Jun 2017, 05:42
2
Kudos
1
Bookmarks
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.
User avatar
L
ScottTargetTestPrep
Target Test Prep Representative
Joined: 14 Oct 2015
Status:Founder & CEO
Affiliations: Target Test Prep
Posts: 18768
Own Kudos [?]: 22073 [5]
Given Kudos: 283
Location: United States (CA)
Send PM
Re: The price of each share of stock K, when traded at a certain stock exc [#permalink] New post   30 Jun 2017, 09:19
2
Kudos
2
Bookmarks
Expert Reply
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.

Answer: D
User avatar
bumpbot
Non-Human User
Joined: 09 Sep 2013
Posts: 32716
Own Kudos [?]: 822 [0]
Given Kudos: 0
Send PM
Re: The price of each share of stock K, when traded at a certain stock exc [#permalink] New post   24 Mar 2023, 02:41
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.
GMAT Club Bot
gmatclubot
Re: The price of each share of stock K, when traded at a certain stock exc [#permalink]
24 Mar 2023, 02:41
Moderators:
Bunuel
Math Expert
92963 posts
yashikaaggarwal
Senior Moderator - Masters Forum
3137 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions