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

Redeem

Last Year the price per share of...

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Moderator
Posts: 2505
Joined: Sun Oct 15, 2017 1:50 pm
Followed by:6 members

Last Year the price per share of...

by BTGmoderatorLU » Thu Oct 19, 2017 6:56 pm
Last Year the price per share of Company A's stock on March 31 was 25 percent higher than its price per share on March 1. By April 30 the stock's price per share was 20 percent lower than the price per share on March 1. What was the percent decrease in price per share of the stock from March 31 to April 30?

A. 5%
B. 25%
C. 36%
D. 45%
E. 56%

The OA is C.

I am getting a wrong answer every time I try. Can any expert help me with this PS question please? Thanks.
Top
Source: — Problem Solving |
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Fri Oct 20, 2017 4:54 am
LUANDATO wrote:Last Year the price per share of Company A's stock on March 31 was 25 percent higher than its price per share on March 1. By April 30 the stock's price per share was 20 percent lower than the price per share on March 1. What was the percent decrease in price per share of the stock from March 31 to April 30?

A. 5%
B. 25%
C. 36%
D. 45%
E. 56%

Let the price on March 1 = 100.

Since the price on March 31 was 25 percent higher than the price on March 1, the price on March 31 = 100 + (25% of 100) = 100+25 = 125.

Since the price on April 30 was 20 percent lower than the price on March 1, the price on April 30 = 100 - (20% of 100) = 100-20= 80.

Percent decrease from March 31 to April 30 = (difference)/(larger) * 100 = (125-80)/125 * 100 = (45/125) * 100 = 36.

The correct answer is C.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8086
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

by Scott@TargetTestPrep » Fri Nov 22, 2019 11:52 am
BTGmoderatorLU wrote:Last Year the price per share of Company A's stock on March 31 was 25 percent higher than its price per share on March 1. By April 30 the stock's price per share was 20 percent lower than the price per share on March 1. What was the percent decrease in price per share of the stock from March 31 to April 30?

A. 5%
B. 25%
C. 36%
D. 45%
E. 56%

The OA is C.

I am getting a wrong answer every time I try. Can any expert help me with this PS question please? Thanks.
We are given that last year the price per share of Company A's stock on March 31 was 25 percent higher than its price per share on March 1, and that by April 30 the stock's price per share was 20 percent lower than the price per share on March 1.

If we let p = the price per share of Company A's stock on March 1, we can create the following equations:

price on March 31st = 1.25p
price on April 30th = 0.8p

We need to determine the percent decrease in price per share of the stock from March 31st to April 30th. We can use the percent change equation:

Percent change = (new - old)/old x 100

Percent decrease = [(0.8p - 1.25p)/(1.25p)] x 100

Percent decrease = [(80p - 125p)/(125p)] x 100

Percent decrease = [(-45p)/(125p)] x 100

Percent decrease = (-9/25) x 100 = -9 x 4 = -36

Thus, there was a 36 percent decrease in price per share.

Answer: C

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pm
Location: Vancouver, BC
Thanked: 5254 times
Followed by:1268 members
GMAT Score:770

Re: Last Year the price per share of...

by Brent@GMATPrepNow » Tue Dec 14, 2021 7:18 am
BTGmoderatorLU wrote: ↑
Thu Oct 19, 2017 6:56 pm
 Last Year the price per share of Company A's stock on March 31 was 25 percent higher than its price per share on March 1. By April 30 the stock's price per share was 20 percent lower than the price per share on March 1. What was the percent decrease in price per share of the stock from March 31 to April 30?

A. 5%
B. 25%
C. 36%
D. 45%
E. 56%

The OA is C.

I am getting a wrong answer every time I try. Can any expert help me with this PS question please? Thanks.
Since the goal is to find a certain PERCENT (as opposed to finding a certain value), we can assign a nice value to the share price on March 1st
Let's say $100 = the share price on March 1st

The price per share of Company A's stock on March 31 was 25 percent higher than its price per share on March 1
So, the price per share on March 31 = $100 + 25% of $100 = $125

By April 30 the stock's price per share was 20 percent lower than the price per share on March 1
So, the price per share on April 30 = $100 - 20% of $100 = $80

What was the percent decrease in price per share of the stock from March 31 to April 30?
So, we want to find the percent decrease when we go from $125 to $80

Percent decrease = (100)(difference in values)/original value
= (100)(125 - 80)/125
= (100)(45)/125
= (100)(9)/25
= (4)(9)
= 36%

Answer: C
Brent Hanneson - Creator of GMATPrepNow.com
Image
Top
Post new topic Post Reply
• Page 1 of 1