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

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

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New post 04 Sep 2016, 04:40
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A
B
C
D
E

Difficulty:

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Question Stats:

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

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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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New post 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%
The answer is C
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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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New post 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%
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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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New post 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"
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The price of stock decreased by 8% last year and rose by 10% this year  [#permalink]

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New post 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
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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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New post 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.

Answer: C
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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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New post 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.

Correct Answer: Option C
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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

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

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