In January, the value of a stock increased by 25%; and in February, it

Question

In January, the value of a stock increased by 25%; and in February, it decreased by 20%. In March, it increased by 50%; and in April, it decreased by 40%. If Jack invested $80 in the stock on January 1 and sold it at the end of April, what was the percentage change in the price of the stock?

(A) 0%
(B) 5%
(C) 10%
(D) 40%
(E) 50%

(A) 0%
(B) 5%
(C) 10%
(D) 40%
(E) 50%

Dare Devil · Answer

In January, the value of a stock increased by 25%; and in February, it decreased by 20%. In March, it increased by 50%; and in April, it decreased by 40%. If Jack invested $80 in the stock on January 1 and sold it at the end of April, what was the percentage change in the price of the stock?

(A) 0%
(B) 5%
(C) 10%
(D) 40%
(E) 50%

(A) 0%
(B) 5%
(C) 10%
(D) 40%
(E) 50%

Let 'x' be the initial prize of the stock
Final prize in April = 1.25*0.8*1.5*0.6*x
 =  0.9X

Change =  x-0.9x * 100 % 
 = 10% decrease

Archit3110 · Answer

given price = 80$ 
so change % 
 80*1.25*.8*1.5*.6 = 72 $ end of april
80-72/80 = 10 % IMO C

ScottTargetTestPrep · Answer

Since our answer choices are percentages, we do not need to use 80 as the stock price on January 1. We can use variable n. Thus, we have:

n x 5/4 x 4/5 x 15/10 x 6/10

n x 3/2 x 3/5 = 9n/10 = 90n/100 = 0.9n

Thus, we see the percent change is 10%.

Alternate Solution:

Since our answer choices are percentages, we do not need to use 80 as the stock price on January 1. Let’s instead use the more convenient number 100 as the starting price. In January, the stock’s value is 100 x 1.25 = 125. In February, the value is 125 x 0.80 = 100. In March, its value is 100 x 0.5 = 150, and in April it is 150 x 0.6 = 90.

Thus it has dropped $10, from $100 to $90, which is a 10% decrease.

Answer: C

bumpbot · Answer

Automated notice from GMAT Club BumpBot: 

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

 This post was generated automatically.

In January, the value of a stock increased by 25%; and in February, it

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

In January, the value of a stock increased by 25%; and in February, it

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards