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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## At the end of the first quarter, the share price of a tagged by: AAPL ##### This topic has 2 expert replies and 0 member replies ### Top Member ## At the end of the first quarter, the share price of a ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult 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 first quarter to the end of the second quarter? A. 20% B. 25% C. 30% D. 33% E. 40% OA B ### GMAT/MBA Expert GMAT Instructor Joined 08 Dec 2008 Posted: 12534 messages Followed by: 1245 members Upvotes: 5254 GMAT Score: 770 AAPL wrote: 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 first quarter to the end of the second quarter? A. 20% B. 25% C. 30% D. 33% E. 40% Let$100 = share price at the beginning of the year

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.
So, $120 = share price at the end of the first quarter At the end of the second quarter, the share price was 50 percent higher than it was at the beginning of the year. So,$150 = share price at the end of the second quarter

What was the percent increase in the share price from the end of the first quarter to the end of the second quarter?
So, we want the percent increase from $120 to$150

Percent increase = 100 x (new - old)/old
= 100 x ($150 -$120)/$120 = 100 x 30/120 = 25% Answer: B Cheers, Brent _________________ Brent Hanneson â€“ Creator of GMATPrepNow.com Use our video course along with Sign up for our free Question of the Day emails And check out all of our free resources GMAT Prep Now's comprehensive video course can be used in conjunction with Beat The GMATâ€™s FREE 60-Day Study Guide and reach your target score in 2 months! ### GMAT/MBA Expert GMAT Instructor Joined 04 Dec 2012 Posted: 1996 messages Followed by: 237 members Upvotes: 1443 Calculating the correct answer isn't difficult, as Brent demonstrated. However, savvy GMAT test takers will always try to use logic to eliminate answer choices before they even start calculating! The student who isn't reading carefully might think "up 20%... then up 50%... that's a difference of 30 between those two." But we know that 30 is a trap answer - in percent change, when our comparison point (our base) changes, then the percent changes, too. The price at the end of the 1st quarter is 20% greater than the price at the beginning of the year. If we took a 30% increase on that new number, that would be greater than a 30% difference from our original value. In other words: original + (20% of the original) + (30% of the original) = 150% of the original --> 50% increase but: original + (20% of the original) + (30% of the NEW, higher value) > 150% of the original Thus, it cannot be a 30% increase from the 1st quarter value to the 2nd quarter value; it must be that a smaller percentage of the 1st quarter price was added to get us to 150% of the original. We can eliminate C, D, and E. At that point, we still have 2 answers remaining, so we would have to do the math, as Brent demonstrated. But it's always helpful to eliminate answers before you start! Sometimes you can eliminate everything but a single answer and never have to do the math. At other times, it can help you to avoid mistakes: "hm, I landed on E, but I already eliminated that because it's illogical. I must have made a mistake." _________________ Ceilidh Erickson Manhattan Prep GMAT & GRE instructor EdM in Mind, Brain, and Education Harvard Graduate School of Education Manhattan Prep instructors all have 99th+ percentile scores and expert teaching experience. Sign up for a FREE TRIAL, and learn why we have the highest ratings in the GMAT industry! Free Manhattan Prep online events - The first class of every online Manhattan Prep course is free. Classes start every week. • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • FREE GMAT Exam Know how you'd score today for$0

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