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20 May 2025, 09:32
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Difficulty:
15%
(low)
Question Stats:
87% (00:41) correct
12% (02:50) wrong based on 8 sessions
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Date
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The price of a share of company A’s stock fell by 20% two weeks ago and by another 25% last week to its current price. By what percent of the current price does the share price need to rise in order to return to its original price?
A. 45%
B. 55%
C. \( 66 \frac{2}{3}\)%
D. 75%
E. 82%
A. 45%
B. 55%
C. \( 66 \frac{2}{3}\)%
D. 75%
E. 82%
31 May 2025, 01:46
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OE
Pick a value for the original price of the stock. Since this is a percent question, picking $100 will make the math easy. The first change in the price of the stock was by 20% of $100, or $20, making the new price $100 - $20 = $80.
The price then fell by another 25%. You know that 25% is the same as 1/4 and 1/4 of $80 is $20. Therefore, the current price is $80 - $20 = $60. To return to its original price, the stock needs to rise from $60 to $100, that is, by $100 - $60 = $40. Then $40 is what percent of the current price, $60?
\(\frac{40}{60} \) (100%) \( =\frac{2}{3} \) (100%) \( =66\frac{2}{3} \) %
Answer: C
Pick a value for the original price of the stock. Since this is a percent question, picking $100 will make the math easy. The first change in the price of the stock was by 20% of $100, or $20, making the new price $100 - $20 = $80.
The price then fell by another 25%. You know that 25% is the same as 1/4 and 1/4 of $80 is $20. Therefore, the current price is $80 - $20 = $60. To return to its original price, the stock needs to rise from $60 to $100, that is, by $100 - $60 = $40. Then $40 is what percent of the current price, $60?
\(\frac{40}{60} \) (100%) \( =\frac{2}{3} \) (100%) \( =66\frac{2}{3} \) %
Answer: C
