The price of a company's stock is increasing by x% from 1993 to 1994 and also is increasing by y% from 1994 to 1995. What is the increasing percentage of the price of the company's stock from 1993 to 1994?
(1) x + y = 300
(2) (1 + x/100)(1 + y/100) = 1.0035
The OA is B.
Please, can anyone explain this DS question? I need help. Thanks.
The price of a company's stock is increasing by x% from 1993
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Let the price at 1993 = z
$$Therefore,\ price\ at\ 1994\ =\ \frac{\left(z\ +\ x2\right)}{100}$$
$$=z\ \frac{\left(1\ +\ x\right)}{100}$$
$$\Pr ice\ at\ 1995\ =\ \frac{\left(z\ +\ x2\right)}{100}+\ \frac{y\left(z\ +\ x2\right)}{100}$$
$$=\ z\left(\frac{\left(1+\ x\right)}{100} \ \frac{\left(1\ +\ y\right)}{100}\right)$$
Statement 1 = x + y = 300
This is NOT SUFFICIENT because, we will have different value of x and y to be equal to 300 from many solutions.
$$Statement\ 2=\ \frac{\left(1+\ x\right)}{100}\ \frac{\left(1\ +\ y\right)}{100}=\ 1.0035$$
From the equation
$$=\ z\left(\frac{\left(1+\ x\right)}{100}\ \frac{\left(1\ +\ y\right)}{100}\right)$$
= z (1.0035)
Price at 1995 = z1.0035
%increase from 1993 to 1994
$$=\ price\ at\ 1994\ -\ price\ at\ 1993\ \cdot\ \frac{100}{1}$$
$$\left(z1.0035\ -\ 2\cdot\ \frac{100}{1}\right)$$
= (z1.0035 - 5)%
Statement 2 is SUFFICIENT.
Option B is correct.
$$Therefore,\ price\ at\ 1994\ =\ \frac{\left(z\ +\ x2\right)}{100}$$
$$=z\ \frac{\left(1\ +\ x\right)}{100}$$
$$\Pr ice\ at\ 1995\ =\ \frac{\left(z\ +\ x2\right)}{100}+\ \frac{y\left(z\ +\ x2\right)}{100}$$
$$=\ z\left(\frac{\left(1+\ x\right)}{100} \ \frac{\left(1\ +\ y\right)}{100}\right)$$
Statement 1 = x + y = 300
This is NOT SUFFICIENT because, we will have different value of x and y to be equal to 300 from many solutions.
$$Statement\ 2=\ \frac{\left(1+\ x\right)}{100}\ \frac{\left(1\ +\ y\right)}{100}=\ 1.0035$$
From the equation
$$=\ z\left(\frac{\left(1+\ x\right)}{100}\ \frac{\left(1\ +\ y\right)}{100}\right)$$
= z (1.0035)
Price at 1995 = z1.0035
%increase from 1993 to 1994
$$=\ price\ at\ 1994\ -\ price\ at\ 1993\ \cdot\ \frac{100}{1}$$
$$\left(z1.0035\ -\ 2\cdot\ \frac{100}{1}\right)$$
= (z1.0035 - 5)%
Statement 2 is SUFFICIENT.
Option B is correct.