Shares of XYZ Co and ABC Corp are sold on a stock exchange that closes

Question

Shares of XYZ Co and ABC Corp are sold on a stock exchange that closes at 5 p.m. each day. At the close of business on Monday, shares of XYZ Co sold for half the price of shares of ABC Corp. On Tuesday and Wednesday, the price of shares of XYZ Co decreased at a rate of $\frac{1}{5}$ per day. During that same period, shares of ABC Corp increased at a rate of $\frac{1}{4}$ per day. At the close of business on Wednesday, the price of shares of ABC Corp was how many times greater, rounded to the nearest integer, than the price of shares of XYZ Co?

A. 3
B. 4
C. 5
D. 6
E. 7

A. 3
B. 4
C. 5
D. 6
E. 7

KaramveerBakshi · Answer

Assuming the shares of ABC at the end of Monday = 100
Therefore, XYZ shares = 50

XYZ shares decreased by 1/5 for two consecutive days (Tue and Wed) = (50 - 50*0.2) = 40 (end of day 1) ----> (40 - 40*0.2) = 32 (end of day 2 (Wednesday))

Similarly, ABC shares increase by 1/4 for two consecutive days (Tue and Wed) = 100 + 100*0.25 = 125 (end of day 1) ----> (125 + 125*0.25) = 125 * 1.25

Now, solving, ABC/XYZ = (125 * 1.25 )/ 32

This rounded off gives 4.

Answer (B)

Edit: Checked my calculation again. 
The number would be closer to 5.
Answer would be (C).

rajatchopra1994 · Answer

Explanation:

ABC share on monday = 1000
so xyz will be = 500
now xyz share decreased by 1/5 for 2 days: 500x0.8x0.8 = 320
abc share increased by 1/4 for next 2 days: 100x1.25x1.25 = 1562.5

So Ratio: 1562.5/320 = 4.88 = 5(aprox)

IMO-C

yashikaaggarwal · Answer

Let the price of XYZ & ABC = 1

On Monday XYZ share was sold at half price of ABC = 0.5

On Tuesday XYZ share was sold at (1/5 less price) 0.5*4/5 = 0.4

On Wednesday XYZ share was sold at (1/5 less price) 0.4*4/5 = 0.32

Final price of XYZ on Wednesday = 0.32

On Monday ABC share was sold at = 1

On Tuesday ABC share was sold at(1/4 more price) 1*5/4 = 1.25

On Wednesday ABC share was sold at (1/4 more price) 1.25*5/4 = 1.5625

Final price of ABC on Wednesday = 1.5625

The price of shares of ABC Corp was how many times greater, rounded to the nearest integer, than the price of shares of XYZ Co = 1.5625/0.32 = 4.88 
Rounding off to 5

Answer is C

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Babineaux · Answer

Please refer to the pic uploaded

IMO ans is C.

Posted from my mobile device

NitishJain · Answer

IMO C

explained below.

anupam87 · Answer

Share price of ABC - $20 
Share price of XYZ - $10 
final price of XYZ - $10 -> $8 -> $6.4
final price of ABC - 20 -> 25 -> 31.25

31.25/6.4 = 31/6 = 5 times (approx)

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Shares of XYZ Co and ABC Corp are sold on a stock exchange that closes

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Shares of XYZ Co and ABC Corp are sold on a stock exchange that closes

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