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# The price of stock decreased by 8% last year and rose by 10% this year

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Math Expert
Joined: 02 Sep 2009
Posts: 65238
The price of stock decreased by 8% last year and rose by 10% this year  [#permalink]

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04 Sep 2016, 04:40
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Difficulty:

5% (low)

Question Stats:

85% (00:54) correct 15% (01:57) wrong based on 73 sessions

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The price of stock decreased by 8% last year and rose by 10% this year. What is the net percentage change in the price of the stock?

A. 0.2%
B. 0.8%
C. 1.2%
D. 1.6%
E. 2%

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Intern
Joined: 05 Oct 2013
Posts: 20
Re: The price of stock decreased by 8% last year and rose by 10% this year  [#permalink]

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04 Sep 2016, 05:15
(100% - 8%) * (100% + 10%) = 0.92 * 1.10 =1.012 = 101.2%.
The net percentage change in the price of the stock is (+) 1.2%
Intern
Joined: 20 Sep 2011
Posts: 19
Schools: Ross '17, ISB '16, NUS '17
GMAT 1: 640 Q40 V35
Re: The price of stock decreased by 8% last year and rose by 10% this year  [#permalink]

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04 Sep 2016, 08:43
Bunuel wrote:
The price of stock decreased by 8% last year and rose by 10% this year. What is the net percentage change in the price of the stock?

A. 0.2%
B. 0.8%
C. 1.2%
D. 1.6%
E. 2%

Ans:
100 * 0.92*1.10 =101.2
101.2-100 =1.2%
Director
Joined: 12 Nov 2016
Posts: 663
Location: United States
Schools: Yale '18
GMAT 1: 650 Q43 V37
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Re: The price of stock decreased by 8% last year and rose by 10% this year  [#permalink]

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21 Jun 2017, 02:38
Bunuel wrote:
The price of stock decreased by 8% last year and rose by 10% this year. What is the net percentage change in the price of the stock?

A. 0.2%
B. 0.8%
C. 1.2%
D. 1.6%
E. 2%

We can solve this question by applying a three basic formulas: percentage decrease, percentage increase, change in percentage

x(.92)(1.1) = remember a percentage decrease is always represented as x times 100-% decrease/100
$100(.92)(1.1)=$101.2

New-old/old = % increase

$101.2-$100/$100 = 1.2 Thus "C" Senior SC Moderator Joined: 22 May 2016 Posts: 3956 The price of stock decreased by 8% last year and rose by 10% this year [#permalink] ### Show Tags 21 Jun 2017, 13:16 Bunuel wrote: The price of stock decreased by 8% last year and rose by 10% this year. What is the net percentage change in the price of the stock? A. 0.2% B. 0.8% C. 1.2% D. 1.6% E. 2% Although multipliers for percent change are usually faster, you can also test values. Let original stock price = 100 Decrease by 8%. Eight percent of 100 is 8. 100 - 8 = 92 Then stock rose by 10%. Ten percent of 92 = 9.20, and the increased end value includes the original 92: 92 + 9.20 = 101.20 Percent change = $$\frac{change}{original}$$ * 100 Change = 101.20 - 100 = 1.20 $$\frac{1.20}{100}$$ * 100 = 1.2 % Answer C _________________ Visit SC Butler, here! Get two SC questions to practice, whose links you can find by date. Our lives begin to end the day we become silent about things that matter. -- Dr. Martin Luther King, Jr. BLACK LIVES MATTER. Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 11099 Location: United States (CA) Re: The price of stock decreased by 8% last year and rose by 10% this year [#permalink] ### Show Tags 29 Mar 2020, 03:54 Bunuel wrote: The price of stock decreased by 8% last year and rose by 10% this year. What is the net percentage change in the price of the stock? A. 0.2% B. 0.8% C. 1.2% D. 1.6% E. 2% We can let the original price of the stock =$100. Therefore, the new price of the stock is:

100 x 0.92 x 1.1 = 92 x 1.1 = $101.2 We see that$101.2 is 1.2% higher than \$100.

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Re: The price of stock decreased by 8% last year and rose by 10% this year  [#permalink]

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29 Mar 2020, 06:04

Solution

Given
In this question, we are given that
• The price of stock decreased by 8% last year and rose by 10% this year

To find
We need to determine
• The net percentage change in the price of the stock

Approach and Working out
We can use the successive percentage change formula to directly calculate the answer

We know, for successive percentage changes of a% and b%, the overall change is (a + b + ab/100)%
• Here, a = -8 and b = 10
• Hence, net change = (-8) + 10 + (-8)*10/100 = 2 – 0.8 = 1.2%

Thus, option C is the correct answer.

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Re: The price of stock decreased by 8% last year and rose by 10% this year   [#permalink] 29 Mar 2020, 06:04