When the stock market opened yesterday, the price of a share

Question

When the stock market opened yesterday, the price of a share of stock X was 10 1/2. When the market closed, the price was 11 1/4. Of the following, which is closest to the percent increase in the price of stock X?

A. 0.5%
B. 1.0%
C. 6.7%
D. 7.1%
E. 7.5%

A. 0.5% 
B. 1.0% 
C. 6.7% 
D. 7.1% 
E. 7.5%

Bunuel · Accepted Answer

Question should read:

When the stock market opened yesterday, the price of a share of stock X was 10 1/2. When the market closed, the price was 11 1/4. Of the following, which is closest to the percent increase in the price of stock X?

A. 0.5%
B. 1.0%
C. 6.7%
D. 7.1%
E. 7.5%

A. 0.5% 
B. 1.0% 
C. 6.7% 
D. 7.1% 
E. 7.5%

General formula for percent increase or decrease, (percent change):  Percent=\frac{Change}{Original}*100 .

So, the percent increase in the price of stock X is  \frac{\frac{45}{4}-\frac{21}{2}}{\frac{21}{2}}*100=\frac{50}{7}%\approx{7.1%} .

Answer: D.

boomtangboy · Answer

Thanks Bunuel.....

Abhishek009 · Answer

Opening price =  10.50 
Closing price =  11.25

Increase in price =  0.75

Percent increase in the price of stock =  \frac{0.75}{10.50}*100

So the answer is (D) 7.14%

GinoRako · Answer

Opening price = 10.50 
Closing price = 11.25

Increase in price = 0.75

Formula percent increase= New(11,25)-Old(10,50) / Old(10,50)

Percent increase in the price of stock = 0.75/10.50 ∗ 100

0,75 = 3/4

10,50= 21/2

Substitute 3/4 for 0.75 and 21/2 for 10,50.

3/4 /(divided by) 21/2 becomes 3/4 * 2/21. Simplify it further we get 1/14, which is 7,1 % D

AmithRaj · Answer

Opening price: 10.5
Closing price: 11.25
Price increase: 0.75

Profit % =  \frac{Price Increase}{Opening Price}  * 100
=  \frac{0.75}{10.5}  * 100

If, you take 10.5 as 10, then the profit % would 7.5%
Since denominator of 10.5 is greater than 10, the profit % must be slightly lesser than 7.5%
Therefore, 7.1% is the answer

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When the stock market opened yesterday, the price of a share

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