At the end of the first quarter, the share price of a certain mutual fund was 20 percent higher than it was at the

AAPL wrote: ↑

Fri Jul 22, 2022 4:31 pm

GMAT Prep

At the end of the first quarter, the share price of a certain mutual fund was 20 percent higher than it was at the beginning of the year. At the end of the second quarter, the share price was 50 percent higher than it was at the beginning of the year. What was the percent increase in the share price from the end of the quarter to the end of the second quarter?

A. 20%
B. 25%
C. 30%
D. 33%
E. 40%

OA B

Solution:

We can let the original price = 100.

The share price at the end of the first quarter was 120.

The share price at the end of the second quarter was 150.

We use the percent increase formula: (New - Old)/Old x 100, obtaining:

(150 - 120)/120 x 100

30/120 x 100

1/4 x 100

Thus, we have a 25 percent increase from the end of the first quarter to the end of the second quarter..

Answer: B