BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

The price of a company's stock is increasing by x% from 1993

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Legendary Member
Posts: 2499
Joined: Sun Oct 29, 2017 2:04 pm
Followed by:6 members

The price of a company's stock is increasing by x% from 1993

by swerve » Thu Jul 26, 2018 9:57 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

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.
Top
Source: — Data Sufficiency |
Legendary Member
Posts: 2214
Joined: Fri Mar 02, 2018 2:22 pm
Followed by:5 members

by deloitte247 » Sat Aug 04, 2018 3:02 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

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.
Top
Post new topic Post Reply
• Page 1 of 1